questions 4-6

Question 4 (1 point) Hotel rooms in Smalltown go for $100, and 1000 rooms are rented on a typical day. 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. The total tax revenue would be $ The deadweight loss would be $ Question 5 (1 point) Hotel rooms in Smalltown go for $100, and 1000 rooms are rented on a typical day. To raise revenue, the mayor decides to charge hotels a tax of $20 per rented room. After the tax is imposed, the going rate for hotel rooms rises to $116, and the number of rooms rented falls to 800. The total tax revenue would be $ The deadweight loss would be $ Question 6 (1 point) A fertilizer plant emits a very foul odour during the production process. If the government aims to make the plant to take into account this negative externality, which of the following statement is likely to happen? (there might be more than 1 correct answers) Select 3 correct answer(s) (a tax can help bring the quantity produced back to an efficient level. The demand curve for fertilizer would shift to the left (up). the government can impose a tax on the product. the government can put a price ceiling on the product The supply curve for fertilizer would shift to the left (up). a tax always causes more inefficiency. we should steer clear of any taxes. the government can shut down the factory. The demand curve for fertilizer would shift to the right (down). The supply curve for fertilizer would shift to the right (down)