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The graph illustrates the market for hotel rooms in Cancun. Suppose the local government imposes a price floor of $300. Move the P* line to
The graph illustrates the market for hotel rooms in Cancun. Suppose the local government imposes a price floor of $300. Move the P* line to reflect the price floor, and place the triangle on the graph to represent the area of the deadweightloss.
500 supply L 450 Deadweight loss 400 350 300 P# Price per room 250 200 150 100 demand 50 0 0 100 200 300 400 500 600 700 800 900 1,000 Quantity of rooms per nightStep by Step Solution
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