Question
3. The market for hotel rooms is in equilibrium as in the graph 1. Suppose the government imposes a tax on buyers of $30 per
3. The market for hotel rooms is in equilibrium as in the graph 1. Suppose the government imposes a tax on buyers of $30 per room. Find the new equilibrium Q, PB, PS, and incidence of tax on the graph.
Graph 1 Markets for Hotels
Tax = $ 30
(a) New equilibrium Q = ________________. (b) Sellers receive Ps = $ ________________. (c) Buyers pay PB = $________________.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
