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Suppose instead of the graph above, the elasticity of demand for hotel rooms is extremely elastic. Choice 1 of 3:the distortion to the market will

Suppose instead of the graph above, the elasticity of demand for hotel rooms is extremely elastic. Choice 1 of 3:the distortion to the market will be smaller than shown in the graph above Choice 2 of 3:the distortion to the market will be larger than shown in the graph above Choice 3 of 3:the distortion to the market will be the same as shown in the graph above Q91 Point Grading comment: Again, suppose the elasticity of demand for hotel rooms is extremely elastic. Choice 1 of 3:the buyer will pay most of the tax Choice 2 of 3:the seller will pay most of the tax Choice 3 of 3:the buyer and seller will split the tax evenly

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