Question

What accounts for the fact that during good weather there are typically enough taxis for everyone...

What accounts for the fact that during good weather there are typically enough taxis for everyone who wants one, but during snowstorms there typically aren’t enough?

Homework Answers

Answer #1

Few factors can be responsible for a decrease in no. of taxi's during bad weather,

1.During unpleasant weather, the demand for taxi's increases, with increasing difficulty to drive, slow traffic, the pay of taxi drivers remain the same. Thus, they refrain from taking the extra effort to drive in bad condition with the same wage.

2. Some drivers who are not income oriented, will be reluctant to drive in bad weather.

3. In extreme conditions, demand reaches peaks, exceeding the supply. And thus many people fail to find a taxi.

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