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To increase their tax income, the mayor decides to charge hotels a tax of $10 per occupied room. After the tax is applied, the room
To increase their tax income, the mayor decides to charge hotels a tax of $10 per occupied room. After the tax is applied, the room rate increases to $108 and the number of rooms occupied drops to 900. Calculate 1) the revenue this tax generates for the City and 2) the irrecoverable loss of efficiency from the tax. Remember that the area of a triangle is half the base by height.
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