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The residents of the town crestone, Colorado have decided that tourism causes too much traffic and congestion. They have decided to place an excise tax
The residents of the town crestone, Colorado have decided that tourism causes too much traffic and congestion. They have decided to place an excise tax on all hotel rooms in their town. Many in the town work in the hospitality industry and there haven't been many new facilities build in the past 20 years. Draw a model of the tax's effect using proper elasticities
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