The price elasticity of demand for imported tequila is, Ask an Expert

Economics

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?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91238449

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