Suppose you are planning a summer vacation and book a hotel room online for $149 a night. However, when you get to the reservation screen, you are informed that you will be charged an additional $30 a night in various taxes that you have to pay to the hotel. a. Indicate whether each of the given factors is likely to raise the economic burden of the tax for you or for the hotel. (for each of the following) - a hurricane recently ravaged the area, resulting in many vacancies at competing hotels. - There are many other hotels in the area - it is the peak of tourist season - the hotel has unique architecture and is considered a historical landmark. b. Ultimately, who pays the majority of the economic burden of the tax is dependent upon (SELECT THE CORRECT ANSWER) the marginal tax rate. the cost-benefit priniciple. the marginal principle. the relative supply and demand elasticities.
Suppose you are planning a summer vacation and book a hotel room online for $149 a night. However, when you get to the reservation screen, you are informed that you will be charged an additional $30 a night in various taxes that you have to pay to the hotel. a. Indicate whether each of the given factors is likely to raise the economic burden of the tax for you or for the hotel. (for each of the following) - a hurricane recently ravaged the area, resulting in many vacancies at competing hotels. - There are many other hotels in the area - it is the peak of tourist season - the hotel has unique architecture and is considered a historical landmark. b. Ultimately, who pays the majority of the economic burden of the tax is dependent upon (SELECT THE CORRECT ANSWER) the marginal tax rate. the cost-benefit priniciple. the marginal principle. the relative supply and demand elasticities.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose you are planning a summer vacation and book a hotel room online for $149 a night. However, when you get to the reservation screen, you are informed that you will be charged an additional $30 a night in various taxes that you have to pay to the hotel.
a. Indicate whether each of the given factors is likely to raise the economic burden of the tax for you or for the hotel. (for each of the following)
- a hurricane recently ravaged the area, resulting in many vacancies at competing hotels.
- There are many other hotels in the area
- it is the peak of tourist season
- the hotel has unique architecture and is considered a historical landmark.
b. Ultimately, who pays the majority of the economic burden of the tax is dependent upon
(SELECT THE CORRECT ANSWER)
- the marginal tax rate.
- the cost-benefit priniciple.
- the marginal principle.
- the relative supply and
demand elasticities.
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