tourists have long complained that hotel accommodations in midville are too expensive. starting last year, the city council, hoping to attract more tourists, lowered the hotel tax rate to 5 percent of room charges. by the end of last year, midville had taken in no less money from hotel taxes than it did the year before, so an examination of the hotel records will show that more tourists stayed in city hotels last year than the year before.

Respuesta :

The average length of a tourist's stay in Midville hotels was not longer last year than it had been the year before.

Taking into account that there were more tourists, lowering the tax rate to 5 percent of room charges couldn't actually decrease the hotel's tax revenue. The total amount of hotel related tax revenue remained the same. In order to compensate for this, the number of tourists was increased.

The tourists in the hotel Midville remained for just one night and the new tourists arrived for another night to stay. This made the hotel to arrange the high tax revenue of the hotel even when the hotel tax rate was decreased to 5 percent of the hotel room charge.

This further made a conclusion that the avenue length of the tourists stay was not longer last year than it had been the year before.

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https://brainly.com/question/15171571

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