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Gus the cab driver rents a cab and pays for gas. In each of the following circumstances, describe the short-run effect on the price and

Gus the cab driver rents a cab and pays for gas. In each of the following circumstances, describe the short-run effect on the price and quantity of rides Gus offers. How does the profit he generates change? Is Gus now more or less likely to keep driving his cab?

When the price of gas falls

When a new bus company opens up?

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