The Federal government has introduced JobKeeper payments to tackle the rising unemployment due to COVID-19. Loss of employment has meant a loss of income; this means we are experiencing a decrease in individual demand by households. With affordability now low, income elasticity of demand has been impacted.

Is JobKeeper effective in retaining casual employment? How is it impacting individual demand? Do individuals have enough purchasing power to continue buying goods as normal? Explain whether elasticity has changed. If so, how has price and income elasticity changed? Provide evidence and use supply and demand diagrams to support your answer.