Sales ofpleasure boats fell by nearly 90 percent in, Econometrics

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Sales ofpleasure boats fell by nearly 90 percent in

In 1990, the U.S. government imposed a 10 percent taxon certain luxuries such as pleasure boats. Sales ofpleasure boats fell by nearly 90 percent in southernFlorida as prospective buyers bought boats in theBahamas to avoid paying the tax. What does this implyabout the size of the elasticity of demand?

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