For hotel rooms the equation for the demand curve in the Boston is given by P=5000-0.48Qd. The supply curve is given by the P = 0.02Qs. Prices are nightly rates in dollars.
1. What would be the new price and quantity of hotel rooms actually traded if a price ceiling of $150per month were instituted in the city of Boston?
2. What is the equilibrium price and quantity with the tax if a sales tax of $10 per night is instituted by the city of Boston to be collected from suppliers?