2.18. In Metropolis only taxicabs and privately owned automobiles are allowed to use the highway between the

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2.18. In Metropolis only taxicabs and privately owned automobiles are allowed to use the highway between the airport and downtown. The market for taxi cab service is competitive. There is a special lane for taxicabs, so taxis are always able to travel at 55 miles per hour. The demand for trips by taxi cabs depends on the taxi fare P, the average speed of a trip by private automobile on the highway E, and the price of gasoline G. The number of trips supplied by taxi cabs will depend on the taxi fare and the price of gasoline.

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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