2. Demand elasticity and the size of deadweight loss associated with taxation The following graph shows the supply and demand curves for Airbnb rentals in the hypothetical economy of Luxuria in 2010, two years after Airbnb launched; the equilibrium quantity of rentals was 240 rooms per day, and the equilibrium price was $140 per room. At that time, Luxuria was enforcing tax regulations on the market for hotels, but it hadn't yet initiated a tax arrangement on room rentals through Airbnb. On the following graph, use the green rectangle (triangle symbols) to indicate the tax revenue the government could have collected in 2010 if it had levied a $20-per-room tax on Airbnb rentals. (Note: You will not be graded on your placement of this area on the graph.) PRICE (Dollars per rental) 180 Qemand010 200 80 150 140 130 120 110 2 2 2 2 3 3 8 8 8 100 170 160 100 0 00 120 Supply 201 Potential Tax Revenue 180 240 300 300 420 400 540 600 RENTALS (Rooms per day):