DESCRIPTIONRead the taxi cab article. Draw a graph of the taxi cab situation and answer the following questions:1.Draw a diagram of the market for taxi rides and a second diagram of the market for taxi licenses. 2. How does the strike impact the market for rides? What other market mechanisms are in place regarding rides? (HINT: Think prices)3. How does the government suggestion of adding licenses impact the market for licenses? Show on the graph. 4. Who is helped and who is hurt in the situation regarding the government adding licenses? Explain.

TEXT OF STORY Cab drivers in Rome are facing off against city hall in a push for a 25 percent price hike. Megan Williams reports how the city's response could threaten another cabbies' strike. Doug Krizner: In Rome, taxi drivers are clashing with city hall, and the threat of another cabbies' strike is looming. Megan Williams reports from the Italian capital. Megan Williams: Rome's taxi drivers are angry, again. In an ongoing face-off with city hall, cab drivers in Italy's capital are pushing hard for a 25 percent price hike. The city instead wants an 18 percent cap, despite drivers repeated threats of more strikes. Last year, taxis went on strike when the city announced it would issue 1,000 more taxis licenses, something the public has wanted for years. Rome has fewer than three taxis for every thousand residents one of the lowest rates in Europe. But this angry Roman taxi driver says more drivers will only cut into business: [Sound of angry Italian taxi driver] "We pay taxes, insurance, car repairs, traffic tickets, We work 24 hours a day, and we earn practically nothing," he says. As the drivers and city hall continue their standoff, Italians and tourists are none too happy about where they stand: in long lineups, with no guarantees they'll be going anywhere soon