The price elasticity of demand for imported tequila

Reference no: EM13699013

The price elasticity of demand for imported tequila is estimated to be -0.20 over a wide interval of prices. The federal government decides to raise import tariffs on foreign booze, causing the price to rise by 20%. Will tequila sales rise, fall, or stay the same, and by what percentage amount?

Reference no: EM13699013

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The price elasticity of demand for imported tequila : The price elasticity of demand for imported tequila is estimated to be -0.20 over a wide interval of prices. The federal government decides to raise import tariffs on foreign booze, causing the price to rise by 20%. Will tequila sales rise, fall, or ..

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