Prices are nightly rates in dollars

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The equation for the demand curve for hotel rooms in Boston is given by P=5000-0.48Qd. The supply curve is given by P = 0.02Qs. Prices are nightly rates in dollars. Show me your work

A. If a price ceiling of $150per month were instituted in the city of Boston, what would be the new price and quantity of hotel rooms actually traded?

B. If a sales tax of $10 per night is instituted by the city of Boston to be collected from suppliers, what is the equilibrium price and quantity with the tax? Add this situation to your graph.

Reference no: EM13735453

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