The correct answer is:
|
|
Yes |
No |
|
US dollars |
x |
|
|
Aeroplane tickets |
|
x |
|
Sterling |
|
x |
A fall in the price of sterling would make London hotels cheaper for foreign tourists. A fall in the price of aeroplane tickets would make London cheaper to visit for foreign tourists. Events 2 and 3 would lead to a rise in demand for hotel rooms. In contrast, a fall in the value of the US dollar would make the UK more expensive to visit for US tourists and tourists from other countries where the US dollar is widely used, and demand for hotel rooms in London would fall.
