Answer Problems and Applications number 9 on page 166.Make sure you explain your answers when needed and show your calculations.You also need to draw supply and demand graphs for both a and b.You also need to answer these additional questions: assume you are the city government.Which tax is better for you, a or b?Why?(12 points)

a. Hotel rooms in Smalltown go for $100, and 1,000rooms are rented on a typical day. a. To raise revenue, the mayor decides to charge hotels a tax of $10 per rented room. After the tax is imposed, the going rate for hotel rooms rises to $108, and the number of rooms rented falls to 900. Calculate the amount of revenue this tax raises for Smalltown and the deadweight loss of the tax.a.

b. The mayor now doubles the tax to $20. The price rises to $116, and the number of rooms rented falls to 800. Calculate tax revenue and deadweight loss with this larger tax. Are they double, more than double, or less than double? Explain.