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Your fast response is my greatest help. 1. The following is an excerpt of a news article discussing the tourism tax in Venice. -------------------------------------------------------------------------------- In

Your fast response is my greatest help.

1.

The following is an excerpt of a news article discussing the tourism tax in Venice.

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In early 2019, Venice imposed tourism tax on the local providers of tourism goods and services with the aim of reducing the number of tourists. This decision was made in response to the growing complaints of the local residents that they were negatively affected by the noise and hassle that result from overtourism.

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Q: Assuming that the demand for the tourism goods and services in Venice is not sensitive to price changes, discuss why the tourism tax imposed in Venice is not likely to be efficient in reducing the number of tourists.

Instruction: Use graphical analysis to support your answer. Make sure to explain your answer in your own words, instead of just providing graphs.

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