Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Font Paragraph Styles Voice | Sensitivity A Cab drivers in Rome are facing off against city hall in a push for a 25 percent price

image text in transcribed
Font Paragraph Styles Voice | Sensitivity A Cab drivers in Rome are facing off against city hall in a push for a 25 percent price hike. DESCRIPTION Megan Williams reports how the city's response could threaten another cabbies' strike. Read the taxi cab article. Draw a graph of the taxi cab situation and answer the following Doug Krizner: In Rome, taxi drivers are clashing with city hall, and the threat of another questions: cabbies" strike is looming. Megan Williams reports from the Italian capital. 1 Draw a diagram of the market for taxi rides and a second diagram of the market for taxi licenses. Megan Williams: Rome's taxi drivers are angry, again. In an ongoing face-off with city 2. How does the strike impact the market for rides? What other market mechanisms are hall, cab drivers in Italy's capital are pushing hard for a 25 percent price hike. The city in place regarding rides? (HINT: Think prices) instead wants an 18 percent cap, despite drivers repeated threats of more strikes. 3. How does the government suggestion of adding licenses impact the market for Last year, taxis went on strike when the city announced it would issue 1,000 more taxis licenses? Show on the graph. 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. 4. Who is helped and who is hurt in the situation regarding the government adding But this angry Roman taxi driver says more drivers will only cut into business: licenses? Explain. [Sound of angry Italian taxi driver] [' (Ctrl) "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 stand-off, Italians and tourists are none too happy about where they stand: in long line-ups, with no guarantees they'll be going anywhere soon. Deliverable For information, taxi licenses in Rome, as they are in the large cities in the U.S. and across Europe, are purchased once and become private property. The licenses are passed down from father to son or mother to daughter or are sold on the open market. In Rome, a license can fetch a price at or around 200,000 Euro on the open market. There is a fixed number of licenses and each cab needs a license to operate. The government has a set price per kilometer ride - 1 50 euro price to enter the cab and then a set price per kilometer of travel

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How China Escaped Shock Therapy The Market Reform Debate

Authors: Isabella M Weber

1st Edition

0429953968, 9780429953965

More Books

Students also viewed these Economics questions

Question

What was Aristotles approach to the soul body question?

Answered: 1 week ago

Question

1. Too understand personal motivation.

Answered: 1 week ago