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The graph to the right shows the market for ride-sharing services like Uber and Lyft in New York City. Assume that at first the market

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The graph to the right shows the market for ride-sharing services like Uber and Lyft in New York City. Assume that at first the market is perfectly competitive. Suppose now that the New York City taxi drivers union successfully lobbies the mayor to establish quotas that restrict the quantity of ride sharing providers. The supply of Uber and Lyft drivers is then legally restricted by the amount indicated in the graph (a) As a result of this quota system, the price of ride sharing servies in New York City will and the quantity of ride sharing services will A. Rise: Rise B. Rise; Fall C. Fall: Fall OD. Fall: Rise (b) Illustrate the loss of efficiency that results from the quota system, Use the triangle drawing tool to shade in the deadweight loss. Label the shaded area 'Deadweight Loss'. Carefully follow the instructions above, and only draw the required objects. The graph to the right shows the market for ride-sharing services like Uber and Lyft in New York City. Assume that at first the market is perfectly competitive. Suppose now that the New York City taxi drivers union successfully lobbies the mayor to establish quotas that restrict the quantity of ride sharing providers. The supply of Uber and Lyft drivers is then legally restricted by the amount indicated in the graph (a) As a result of this quota system, the price of ride sharing servies in New York City will and the quantity of ride sharing services will A. Rise: Rise B. Rise; Fall C. Fall: Fall OD. Fall: Rise (b) Illustrate the loss of efficiency that results from the quota system, Use the triangle drawing tool to shade in the deadweight loss. Label the shaded area 'Deadweight Loss'. Carefully follow the instructions above, and only draw the required objects

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