-. Hotel rooms in Small town go for $100, and 1,000 rooms 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 11 lame: Class: Dat dicro Prin Midterm 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 Small town and the deadweig ht loss of the tax. (Hint The area of a triangle is 1/2 3 base 3 height} b. The mayor now doubles the tax to $20. The price rises to $116, and the number of rooms rented falls to 300. Calculate tax revenue and deadweight loss with this larger tax. Are they double. more than double, or less than double? Explain