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Identify the Three Factors That Undermined Import Substitution

question 25

Essay

Identify the three factors that undermined import substitution. Explain the economic and political reasons for the adoption of structural adjustment policies.


Definitions:

Inverse Demand Function

A representation of demand that expresses price as a function of quantity, rather than the conventional demand function which expresses quantity demanded as a function of price.

Price Elasticity

Measures the responsiveness of quantity demanded or supplied to a change in price.

Wealth

The abundance of valuable resources or valuable material possessions, including the total of all financial assets minus any liabilities.

Price Elasticity

A measure in economics that shows how the quantity demanded of a good or service responds to a change in its price.

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