This question is for a discussion it only needs to be a paragraph or two.
Price sensitivity: Many goods and products are now made overseas in countries where labor is cheap. Highly paid workers here in the USA – especially unionized workers -cannot compete with factory workers in countries like China, Taiwan, Vietnam, India, etc. Just as an example, you might pay $45.00 for a small electronic device made in China. Would you be willing to pay $120.00 for this same device made entirely here in the USA? Would you be willing to stop shopping at Wal-Mart and Costco? How are these examples related to the “income effect” and “substitution effect”. How are American workers affected by imports in the short run? How does society benefit in the long run?