Figure: Market for Hotel Rooms
(Figure: The Market for Hotel Rooms) Look at the figure The Market for Hotel Rooms.Suppose the equilibrium price is $110 and the equilibrium quantity is 250.If the local government levies a tax of $30 per night on each hotel room rented, the new equilibrium price will equal ________ and the new equilibrium quantity will equal _.
A.$140; 100
B.$130; 150
C.$120; 200
D.$110; 250

Question

Figure: Market for Hotel Rooms
   (Figure: The Market for Hotel Rooms) Look at the figure The Market for Hotel Rooms.Suppose the equilibrium price is $110 and the equilibrium quantity is 250.If the local government levies a tax of $30 per night on each hotel room rented, the new equilibrium price will equal ________ and the new equilibrium quantity will equal _. 
A.$140; 100
B.$130; 150
C.$120; 200
D.$110; 250

Quizplus · Accepted Answer

The Answer of Figure: Market for Hotel Rooms
   (Figure: The Market for Hotel Rooms) Look at the figure The Market for Hotel Rooms.Suppose the equilibrium price is $110 and the equilibrium quantity is 250.If the local government levies a tax of $30 per night on each hotel room rented, the new equilibrium price will equal ________ and the new equilibrium quantity will equal _. 
A.$140; 100
B.$130; 150
C.$120; 200
D.$110; 250