1. The daily market demand and supply for hotel rooms are given by Q = 160 - P and Q = P - 40. %3D a. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, how much do consumers pay for rooms? b. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, how much total tax revenue is generated? c. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, how much is the deadweight loss of the tax? d. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, consumer surplus shrinks from what to what? e. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, how much do sellers receive per room net of taxes?
1. The daily market demand and supply for hotel rooms are given by Q = 160 - P and Q = P - 40. %3D a. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, how much do consumers pay for rooms? b. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, how much total tax revenue is generated? c. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, how much is the deadweight loss of the tax? d. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, consumer surplus shrinks from what to what? e. If a per-unit tax of $20 per room is imposed to help fund a sports stadium, how much do sellers receive per room net of taxes?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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