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Economics

Assume that the demand for running shoes is highly inelastic and the supply curve for running shoes is highly elastic. Suppose that the tastes of the exercising public shift away from jogging and toward weight training. Will the effect be larger on price or on quantity of running shoes? If the federal government decides to impose a tax on the purchase of running shoes, will the effect be larger on price or on quantity? Illustrate each of your answers with a diagram.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9605570

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