Studies Have Shown That the Price Elasticity of Demand for Necessities

question 173

Essay

Studies have shown that the price elasticity of demand for necessities, such as food, are higher in developing countries and lower in developed countries. What is the reason for this difference in elasticity?

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Definitions:

Neurotransmitters

Chemical substances that carry signals from one neuron to another.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out nervous signals.

Spinal Cord

The long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column.

Neurons

The basic units of the nervous system; cells that receive, integrate, and transmit information in the nervous system. Neurons operate through electrical impulses, communicate with other neurons through chemical signals, and form neural networks.