In the following cases, indicate which currency is appreciating and which one is depredating:
(i) A change from $3$ = 2 $p o u n d s t o$ 4 $= 2$ pounds .
(ii) A change from $R s .95 = 2 U S$ $t o$ Rs. 150= 3 US .
(iii) A change from $R s . 140 = 2$ pounds to $R s . 60 = 1$ pounds.
(iv) A change from $R s . 25 = 1$ Singapore $t o$ Rs. 20 =1 $S i n g a p o r e$ .

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Solution

(i) Pounds is appreciating and $ is depreciating.
(ii) $i s a p p r e c i a t i n g a n d$ Rs.$ is depreciating.
(iii) $R s .$ is appreciating and pounds is depreciating:
(iv) $R s .$ is appreciating and Singapore $ is depreciating.

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R s .140 = 2

R s . 60 = 1

A

B

Price (Rs.)	Quantity Supplied (A)	Quantity Supplied (B)
$1$ $2$ $3$ $4$ $5$	$20$ $40$ $60$ $80$ $100$	$0$ $20$ $40$ $60$ $80$

R S . 2

R s . 3

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B

20

1 U S

R s . 50

R s . 48

Output (Units)	Total Cost (Rs.)	Average Variable Cost (Rs.)	Marginal Cost (Rs.)
$0$ $1$ $2$ $3$ $4$	$60$ $140$ $190$ $240$ $300$	- - - - -	- - - - -

If the exchange rate changed from 2 $= R s . 135 t o 1.75$ = Rs. 105, which of the following is true?

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