content area top left Part 1 Hotel Nemo is the only under dash sea hotel in the nation. The table sets out the demand schedule for rooms and the cost schedule for running the under dash sea hotel. At the market equilibrium, no children under 10 years old stay at the hotel. Hotel Nemo offers children a discount of 50 percent, which brings in more families. How will this discount change the consumer surplus and producer surplus? Will Hotel Nemo be more efficient by offering the discount to children? Question content area bottom left Part 1 This discount _______ consumer surplus and _______ producer surplus. A. increases; increases B. decreases; decreases C. decreases; increases D. increases; decreases Part 2 Hotel Nemo is _______ efficient. A. more B. equally C. less . . . Question content area right Part 1 Price Quantity Total cost (dollars per room) (rooms per night) (dollars per night) 20 0 1000 18 100 1600 16 200 2200 14 300 2800 12 400 3400 10 500 4000 8 600 4600 6 700 5200 4 800 5800