Countries with high-income levels often display lower price elasticities for necessities such as food,shelter,and medical care.

Question

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This is because people in high-income countries have more purchasing power and may be less sensitive to price changes for necessary items compared to those in lower-income countries who may have to make difficult trade-offs between basic needs and discretionary spending.

Countries with High-Income Levels Often Display Lower Price Elasticities for Necessities