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The income elasticity of demand for primary products tends to be lower than that for manufactured products and services. Examine the implications of this for
"The income elasticity of demand for primary products tends to be lower than that for manufactured products and services."
Examine the implications of this for producers and for the economy as a whole. (15 marks)
There needs to be an evaluation at the end (for example, long term vs. short term). Atleast one example for primary products and manufactured products or services needs to be used (Rice and Phone for example). Atleast one graph with explanation.
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