An Excise Tax Imposed on Hotel GuestsA $40 per room tax imposed on hotel guests shifts the demand curve from D1 to D2, a downward shift of $40. The equilibrium price of hotel rooms falls from $80 to $60 per night, and the quantity of rooms rented falls from 10,000 to 5,000. Although in this case the tax is officially paid by consumers, while in Figure 50.6 the tax was paid by producers, the outcome is the same: after taxes, hotel owners receive $60 per room but guests pay $100. This illustrates a general principle: The incidence of an excise tax doesn’t depend on whether consumers or producers officially pay the tax.