Refer to the Following Figure:

the Hilton Hotel Chain $$D _ { \text {Business } }$$

question 55

Multiple Choice

Refer to the following figure:

The Hilton Hotel chain serves both business and vacation travelers.
$$D _ { \text {Business } }$$ and
$M R _ { \text {business } }$ represent the demand and marginal revenue for business travelers, while
$D _ { \text {vacation } }$ and
$M R _ { \text {Vacatin } }$ are the demand and marginal revenue for vacation travelers.
-What price should the Hilton charge VACATION travelers?

• A) $20
• B) $30
• C) $50
• D) $60
• E) $70

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Definitions:

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount of an individual's or entity's income increases, aiming to redistribute income more equally.

Efficiency

The degree to which an entity optimizes the use of its resources to achieve its objectives, minimizing waste and maximizing output.

Equality

Refers to the state or quality of being equal, especially in status, rights, or opportunities.

Redistributes Income

The process by which government policies, taxation, and public spending aim to adjust the allocation of income across a society.