Draft a graph which shows the law of supply and demand to explain to conditions as below: You are operating a budget hotel. Coincidently, this is matching the trend/ popularity that a large group of budget concerned travellers are seeking for the stay which charge lower room rates. Government has announced to subsidise for the firms which are involving in tourism industry. Government has implemented the increase of company tax for 2% as to raise the fund to develop the infrastructure of the nation.

Draft a graph which shows the law of supply and demand to explain to conditions as below: You are operating a budget hotel. Coincidently, this is matching the trend/ popularity that a large group of budget concerned travellers are seeking for the stay which charge lower room rates. Government has announced to subsidise for the firms which are involving in tourism industry. Government has implemented the increase of company tax for 2% as to raise the fund to develop the infrastructure of the nation.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 12P

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