When Airbnb customers in Malibu start paying hotel taxes,this will have the potential to ________ the equilibrium price in this market and,therefore,________ efficiency.

Question

Quizplus · Accepted Answer

When taxes are imposed, the cost for consumers typically increases, leading to a higher equilibrium price. This can decrease market efficiency as it may lead to a reduction in the quantity of transactions.

When Airbnb Customers in Malibu Start Paying Hotel Taxes,this Will