–2– SPEC/3/ECONO/HP3/ENG/TZ0/XX

Answer all the questions. Answers must be written within the answer boxes provided.

1.
accounts for 20.2 % of its export earnings. Figure 1
Country X. Dd and Sd represent domestic demand and supply per year, in thousands of
kilograms (kg), while Pw is the world price in US dollars (US$) per kg.

Figure 1

4
Sd
Price (US$ per kg)

3
Pw

Dd

0
0 50 100 150 200 250 300
Quantity of coffee (thousands of kg)

(a) (i)

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16EP02
 –3– SPEC/3/ECONO/HP3/ENG/TZ0/XX

(Question 1 continued)

(ii)

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three reasons.

• Political changes abroad are expected to bring about trade protection.

(iii)

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16EP03