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The graph shows the taxi market in a city. A graph shows the taxi market for a city. The vertical axis shows the fare per
The graph shows the taxi market in a city. A graph shows the taxi market for a city. The vertical axis shows the fare per ride and the horizontal axis shows the quantity of rides (in millions). The demand and supply curves intersect at equilibrium (E) at 20 million rides. A vertical line of quantity 10 million rides indicates a quota. Point A on the graph is where the demand curve intersects with the quota at $7.00 on the vertical axis, and Point B on the graph is where the supply curve intersects with the quota at $4.00 on the vertical axis. Suppose a quota is established at 10 million rides per year. The supply price is (in numerals) $_____
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