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Posted: **Wed Jul 06, 2022 6:20 am**

: Hotel Rooms In Smalltown Go For 80 And 900 Rooms Are Rented On A Typical Day To Raise Revenue The Mayor Decides To C 1 (16.69 KiB) Viewed 39 times

: Hotel Rooms In Smalltown Go For 80 And 900 Rooms Are Rented On A Typical Day To Raise Revenue The Mayor Decides To C 2 (21.33 KiB) Viewed 39 times

: Hotel Rooms In Smalltown Go For 80 And 900 Rooms Are Rented On A Typical Day To Raise Revenue The Mayor Decides To C 3 (18.47 KiB) Viewed 39 times

Hotel rooms in Smalltown go for $80, and 900 rooms are rented on a typical day. To raise revenue, the mayor decides to charge hotels a tax of $15 per rented room. After the tax is imposed, the going rate for hotel rooms rises to $85, and the number of rooms rented falls to 800. Use the following graph to help you answer the questions that follow. You will not be graded on any changes you make to this graph. 140 120 100 Rooms 8 Scratch Demand -0 Scratch Supply
Price of Hotel Rooms 140 120+ 100 80 60 40 20 O 0 200 400 600 Quantity of Hotel Rooms 800 1000 1200 1400 1 Scratch Demand Scratch Supply ++ Scratch Points: ?
This tax raises in government revenue and causes a deadweight loss of in this market. The mayor now doubles the tax to $30. The price rises to $90, and the number of rooms rented fails to 700. This higher tax raises $ in government revenue and causes a deadweight loss of S When the tax is doubled, the tax revenue rises by double, and the deadweight loss rises by in this market. Grade It Now double. Save & Continue Continue without saving