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Price Inelasticity of Demand for a Country's Exports


Explain the reasons why demand for a country’s exports may be price- inelastic.



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I. 🍃Introduction
- Definition of exports
- Importance of exports in the economy

II. Exports may lack substitutes/a country may have a monopoly in the product
- Explanation of lack of substitutes and monopoly
- Difficulty in switching to other products
- Examples of countries with export monopolies

III. Exports may be of addictive products
- Explanation of addictive products
- Price elasticity of demand for addictive products
- Examples of addictive products being exported

IV. Exports may be low-priced products which take up only a small part of income
- Explanation of low-priced products
- Income elasticity of demand for low-priced products
- Examples of low-priced products being exported

V. Exports may be necessities
- Explanation of necessities
- Price elasticity of demand for necessities
- Examples of necessary products being exported

VI. 👉Conclusion
- Summary of main points
- Importance of understanding the characteristics of exports in economic analysis.

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