Bharti Singla
Senior Member
24 Country A exports Good X and imports Good Y from Country B. The price of Good X rises by 20 per cent and the price of Good Y falls by 40 per cent. Which of thefollowing statements is correct about Country A’s terms of trade?
A It has improved by 100 per cent.
B It has improved by 60 per cent.
C It has deteriorated by 100 per cent.
D It has deteriorated by 60 per cent.
May I know why the answer is A?
A It has improved by 100 per cent.
B It has improved by 60 per cent.
C It has deteriorated by 100 per cent.
D It has deteriorated by 60 per cent.
May I know why the answer is A?