The Figure Below Shows Singapore S Demand And Supply Curves For China S Imports Suppose At The Initial Exchange Rate R 1 (35.56 KiB) Viewed 11 times
The Figure Below Shows Singapore S Demand And Supply Curves For China S Imports Suppose At The Initial Exchange Rate R 2 (26.67 KiB) Viewed 11 times
The figure below shows Singapore's demand and supply curves for China's imports. Suppose at the initial exchange rate, R=SGD/RMB=0.2, the import market equilibrium is given by point A. When SGD depreciates by 10%, PM in RMB SM B 1.1 1 0.9 A 1 2 3 D'M DM D'M QM (in Billions)
Singapore's demand for China's imports will shift up by 10%, leading to a new equilibrium at point B B Singapore's demand for China's imports will shift down by 10%, leading to a new equilibrium at point C Singapore's demand for China's imports will remain unchanged, the equilibrium stays at point A. China's demand for Singapore's imports will shift down by 10%, leading to a new equilibrium at point C.
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