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Question 20 20. In Vancouver metro area ( or lower mainland), ride-sharing companies like Lyft and Uber can start operating soon to provide additional options for those people looking to get a taxi service. [ For parts (a) to (c), assume the government does not control the taxi/cab fare in the market] (a) According to the demand and supply analysis in general, will the taxi/cab fare (i.e. price of a taxi service) change when new companies start operating, all else qual? If so, explain how. (b) How are users of tax-services likely to be affected in general by having the ride-sharing companies operate in the vancouver metro area in the near future? Explain on the basis of the demand and suplply analysis. (c) Will the arrival of ride-sharing companies make the demand of taxi-ride services from an existing company like Yellow Cab more elastic or less elastic? Explain. (d) In recent years, local people as well as tourists have often complained about a shortage of taxi-services in the Vancouver metro area. Now there is a concern that there might be a surplus in the market for taxi- services after the new companies start operating, The reason is that taxi/cab fare is controlled by the city governments.For example. a taxi passenger is charged $1.84 per km based on the price set by the city governments in the vancouver metro area. In this context, explain how the price set by the government could be resposible for the possiblity of a peristent shortage or surplus in a market. HTML Editor mal