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A city government passes a law setting the maximum price a taxi driver can charge for taxi rides significantly above the market equilibrium. What impact
A city government passes a law setting the maximum price a taxi driver can charge for taxi rides significantly above the market equilibrium. What impact will this have on the market for taxi rides? The law will lead to a shortage of taxis. The law will decrease taxi fares for passengers without impacting the supply of taxis. The law will lead to a surplus of taxis, and taxi drivers will compete for passengers through unconventional means, such as branding or car quality. The law will have no impact on the market for taxi rides
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