Question
I need help with a microeconomics homework question: Read the taxi cab article. Draw a graph of the taxi cab situation and answer the following
I need help with a microeconomics homework question:
Read 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.
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