The taxicab fare in Newville is regulated. The fare currently charged is $6 a ride. Newville taxicab drivers want to obtain government's permission to lower the fare, which they think will increase their total revenue
From this we can conclude that the drivers believe that the demand for taxicab rides is A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.
A
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A decrease in expected profit
A) lowers the equilibrium real interest rate. B) decreases the supply of loanable funds. C) increases the supply of loanable funds. D) increases the demand for loanable funds. E) raises the equilibrium real interest rate.
When is centralization of decision-making desirable?
Why is the personal income tax considered to be one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower