4.1 (2) Answer the following questions. 4.1.1 Give TWO reasons for public sector failure. 4.1.2 How will a decrease in export prices affect our country's terms of trade? Study the graph below and answer the questions that follow. 2) 4.2 MARKET FOR US DOLLAR S Exchange rate R/US$ D D1 15.00 14.60 S D1 D 0 18 20 Quantity of US dollar 4.2.1 (1) What market is depicted in the graph above? What effect does the shift in the demand curve have on the price of dollars? 4.2.2 (1) 4.2.3 (2) Briefly describe the term exchange rate. What will the effect of the new price for dollars be on export trade between South Africa and the United States? 4.2.4 (2) 4.2.5 Explain how an increase in the number of US tourists to South Africa will influence the value of the rand. (4)