In 2005Uber and Lyfthad not entered the market yet and theNew York City taxi cab commission could set prices andrestrict entry into the market for taxi cab rides. New York City taxi cabs provided a quantity of100 rides in 2005. For simplicity, suppose every taxi cab ride was identical. Each ride lasted 10 miles and the price of each ride was $50. At this price, the price elasticity of demand was -5.0.

Taxi drivers in this market faced two costs. First was the cost of purchasing a yellow Ford Crown Vic taxi cab. Second was the cost of gasoline, which was $2 per gallon at the time. The Ford Crown Vic could travel 20 miles for each gallon of gasoline.

If the New York City taxi cab commission's objective were to maximize economic profits, what price should they charge for each ride?