An Excise Tax Imposed on Hotel OwnersA $40 per room tax imposed on hotel owners shifts the supply curve from S1 to S2, an upward shift of $40. The equilibrium price of hotel rooms rises from $80 to $100 per night, and the equilibrium quantity of rooms rented falls from 10,000 to 5,000. Although hotel owners pay the tax, they actually bear only half the burden: the price they receive net of tax falls only $20, from $80 to $60. Guests who rent rooms bear the other half of the burden because the price they pay rises by $20, from $80 to $100.