Answer to Question #176408 in Economics for zahra

Question #176408

What is the impact of JobKeeper on income elasticity and price elasticity? Is demand elastic or inelastic? Provide examples to support your answer.

1
Expert's answer
2021-03-29T16:49:40-0400

The JobKeeper payment is treated as income for the purposes of social security payments.

If this payment helps to compensate the decline in incomes, then income elasticity and price elasticity will not be affected.


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