How does price elasticity of demand affect a nation's imports?

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Price elasticity of demand will affect how much a nation imports if there is a price difference between domestically made products and imports and if people generally prefer to buy domestic products.

If people would prefer to buy domestic products, the price elasticity of demand comes into play.  If their...

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Price elasticity of demand will affect how much a nation imports if there is a price difference between domestically made products and imports and if people generally prefer to buy domestic products.

If people would prefer to buy domestic products, the price elasticity of demand comes into play.  If their demand for domestic products is relatively price inelastic, fewer imports will be sold.  People will continue to buy domestic products even if their price is higher than that of the imports.  If demand for domestic products is relatively price elastic, then people will buy more of the cheaper imports and the level of imports will rise.

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