The Supply and Demand for Hotel Rooms in PottervilleIn the absence of taxes, the equilibrium price of hotel rooms is $80 per night, and the equilibrium number of rooms rented is 10,000 per night, as shown by point E. The supply curve, S, shows the quantity supplied at any given price, pre-tax. At a price of $60 per night, hotel owners are willing to supply 5,000 rooms, as shown by point B. But post-tax, hotel owners are willing to supply the same quantity only at a price of $100 per night: $60 for themselves plus $40 paid to the city as tax.