Inelastic shit (1 Viewer)

[user18181818]

Hello can someone explain what this means:
Changes in Australia’s trade flows can have a negative impact on the level of inflation through Australia’s inelastic demand for imports of oil & capital (90% of Australia’s oil is imported & 80% of Australia’s imports by value are manufactured goods)

Is it saying because we export oil and it's inelastic it won't increase price whilst the imports will be increasing price since it's elastic???

 

[its_ace21]

im crying the title

 

[mmmmmmmmaaaaaaa]

when saying inelastic demand, it means that the demand for these goods does not change significantly with changes in price. It’s saying that because Australia heavily relies on imports of oil and capital goods (which have inelastic demand), changes in the cost of these imports can have a significant impact on inflation.

 

[user18181818]

when saying inelastic demand, it means that the demand for these goods does not change significantly with changes in price. It’s saying that because Australia heavily relies on imports of oil and capital goods (which have inelastic demand), changes in the cost of these imports can have a significant impact on inflation.

OH THANKS LEGEND