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Q. Some of the largest import tariffs tax on imported goods is on shoes. Strangely, the cheaper the shoes, the higher the tariff. The highest US tariff, 67%, is on a pair of $3 canvas sneakers, while the tariff on $12 sneakers is 37% also that on $300 Italian leather imports is 0%. Laura buys either inexpensive, canvas sneakers ($3 before tariff) or more expensive gym shoes ($12 before the tariff) for her many kids. Use an unconcern curve-budget line analysis to elucidate how Elucidate how imposing these unequal tariffs affects the bundle of shoes that she buys compared to Illustrate what she would have bought in the tariffs absence. Could you confidently predict whether she'll buy relatively more expensive gym shoes after the tariff why or why not?
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