A popular social media celebrity has recently touted the benefits of taking a hotel mini break in Australia. At the same time, in order to raise revenue, the Australian Government has decided to create a tax specifically on the hotel industry. If the effect of the social media celebrity is significant, and the tax only has a minor influence on the price of a hotel stay, will the market price of a stay in a hotel room be lower/equal/higher than it was before the social media celebrity's endorsement and the introduction of the tax? [a] (Type L for lower, E for equal, H for higher, N for need more information).

A popular social media celebrity has recently touted the benefits of taking a hotel mini break in Australia. At the same time, in order to raise revenue, the Australian Government has decided to create a tax specifically on the hotel industry. If the effect of the social media celebrity is significant, and the tax only has a minor influence on the price of a hotel stay, will the market price of a stay in a hotel room be lower/equal/higher than it was before the social media celebrity's endorsement and the introduction of the tax? [a] (Type L for lower, E for equal, H for higher, N for need more information).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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i need the answer quickly

A popular social media celebrity has recently touted the benefits of taking a hotel mini break in Australia. At
the same time, in order to raise revenue, the Australian Government has decided to create a tax specifically
on the hotel industry. If the effect of the social media celebrity is significant, and the tax only has a minor
influence on the price of a hotel stay, will the market price of a stay in a hotel room be lower/equal/higher than
it was before the social media celebrity's endorsement and the introduction of the tax? [a] (Type L for lower, E
for equal, H for higher, N for need more information).

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Step 2: Analyze the Effect of the Social Media Celebrity Endorsement

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Step 3: Examine the Effect of the New Tax on the Hotel Industry

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Step 4: Determine the Overall Impact on Hotel Prices

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