What does this imply about the size of the elasticity of


In 1990, the U.S. government imposed a 10 percent tax on certain luxuries such as pleasure boats. Sales of pleasure boats fell by nearly 90 percent in southern Florida as prospective buyers bought boats in the Bahamas to avoid paying the tax. What does this imply about the size of the elasticity of demand?

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Econometrics: What does this imply about the size of the elasticity of
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