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In New York City, the government sets the fares that taxi drivers can charge. In early 2002, some taxi drivers were upset when Mayor Michael
In New York City, the government sets the fares that taxi drivers can charge. In early 2002, some taxi drivers were upset when Mayor Michael Bloomberg proposed a fare increase. One driver was quoted as saying "I get scared that we will start to lose passongers if rates go up and not gain a cent." What was the driver assuming about the price elasticity of demand for taxi rides? Explain
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