Do the profits of shoemakers change by more in the short run

Reference no: EM13223355

Suppose the government institutes a new sales tax on shoes, which are produced by a competitive constant-cost industry.
a. Does the price of shoes change by more in the short run or in the long run?

b. Does the industry-wide quantity change by more in the short run or in the long run?
c. Does the quantity provided by each shoemaker change by more in the short run or in the long run?

d. Do the profits of shoemakers change by more in the short run or in the long run?

Reference no: EM13223355

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