Look at the figure The Market for Hotel Rooms. Suppose the equilibrium price is $110 and the equilibrium quantity is 250. If the local government levies a tax of $30 per night on each hotel room rented, the new equilibrium price will equal_ and the new equilibrium quantity will equal .(explain solving process please) A) $140; 100 B) $130; 150 C) $120; 200 D) $110; 250

Look at the figure The Market for Hotel Rooms. Suppose the equilibrium price is $110 and the equilibrium quantity is 250. If the local government levies a tax of $30 per night on each hotel room rented, the new equilibrium price will equal_ and the new equilibrium quantity will equal .(explain solving process please) A) $140; 100 B) $130; 150 C) $120; 200 D) $110; 250

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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here is the diagram