Assume that the United Arab Emirates has the following import/export volumes and prices. It undertakes a major "devaluation" of the UAE Dirham (AED) by 6% on average

against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance?

Initial cross exchange rate, AED/ = 4.2

Price of exports, (AED) = 100 billion

Price of imports, () = 112 billion

Quantity of exports, units = 300

Quantity of imports, units = 200

Percentage devaluation of the AED = 6%

Price elasticity of demand, imports = -0.85

I'm really stuck on this question. Can you please show me the full working out of the answers? Thanks.

Also what is the purpose of the price elasticity of demand imports in this question? Is it being used in the answer, if not, what's the need of having it in the question?