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Given the experience of collecting the occupancy tax on hotel rooms, the mayor decides to double the tax to $20. Room prices increase to $116
Given the experience of collecting the occupancy tax on hotel rooms, the mayor decides to double the tax to $20. Room prices increase to $116 and occupancies decrease to 800. Calculate 1) the revenue that this tax increase generates for the City and 2) the irrecoverable loss of efficiency related to this higher tax.
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