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( ? ) The demand for Airbnb rooms has not only shifted to the right, but it has also become relatively elastic since 2 0
The demand for Airbnb rooms has not only shifted to the right, but it has also become relatively elastic since
Comparing the market for Airbnb rentals for the two years is complicated by the fact that the graph depicts three changes: total demand increases, total supply increases, and the slope of the demand curve changes. To isolate the effect of elasticity on deadweight loss and government revenue, consider the following scenario:
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