A group of supermarkets in another country increases its orders for food produced in the UK. The foreign-exchange market is freely floating.
Explain what is most likely to happen to demand for pounds and the value of the pound, and suggest one effect on UK households buying imported food.
53 exam-style questions on OCR GCSE Economics 4.3 Exchange rates, covering 4.3.1 Draw how exchange rates are determined, 4.3.2 Analyse how exchange rates are determined, 4.3.3 Calculate currency conversion, 4.3.4 Analyse exchange rate data, and 4.3.5 Effect of exchange rate changes. Each one has a worked solution and a mark scheme showing where the marks go.