A firm exports ceramic tiles. In Year 1, the average export price was £15 per box. Its export volumes are shown below.
| Year | Export volume |
|---|---|
| Year 1 | 80,000 boxes |
| Year 2 | 64,000 boxes |
Calculate the firm's export earnings in Year 1.
Calculate the minimum average export price per box the firm needs in Year 2 for its export earnings to be no lower than in Year 1.
Explain why the percentage rise in the average export price needed in Year 2 is greater than the percentage fall in export volume.
52 exam-style questions on OCR GCSE Economics 4.2 Balance of payments, covering 4.2.1 Balance of payments on current account, 4.2.2 Balanced account, surplus and deficit, 4.2.3 Calculate deficits and surpluses, 4.2.4 Analyse exports and imports data, 4.2.5 Importance of the balance of payments, and 4.2.6 Causes of surpluses and deficits. Each one has a worked solution and a mark scheme showing where the marks go.