Question

3.In many countries, governments set the fares for taxi rides. The prices for taxis insafe neighbourhoods...

3.In many countries, governments set the fares for taxi rides. The prices for taxis insafe neighbourhoods are the same as for those in dangerous neighbourhoods. In whatkind of neighbourhood is it easier to find a cab, and why? If taxi price controls wereeliminated, what would happen to the price and quantity of taxi rides in dangerousneighbourhoods?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) The safe neighborhood will be easier to find the taxi because the place is safer and people will be more willing to visit that place. As the price of the cab is same in all the markets safe and unsafe it will lead to people visiting safer side more comfortably.

If the price control was eliminated the price of the unsafe areas will increase as the cab driver face considerable risk of various crime while picking a commuter from the unsafe zone, they would like to increase the price and manage the risk.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
3. The quantities of Uber rides that Portland residents are willing to buy is represented by...
3. The quantities of Uber rides that Portland residents are willing to buy is represented by the following demand schedule: Demand for Uber rides Price $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 Quantity demanded (per day) 100 90 80 70 60 50 40 30 Use the total revenue test to determine whether demand is elastic, inelastic or unitary elastic between each of the prices (i.e. use the change in TR to find Ed) Show your work. Explain in two...
Suppose you work for a US based soybean manufacturing company which supplies soybeans to other countries,...
Suppose you work for a US based soybean manufacturing company which supplies soybeans to other countries, among which are China and Nigeria. From your company’s sales records, China is responsible for 80% of your company’s global sales and Nigeria is responsible for 0.2% of your company’s sales. Your contract with the companies in both countries has just expired and the week before negotiations are set to start, it is announced that tariffs have been placed on soybeans in both countries....
question 3 The following table describes the market for waffles. Price Quantity Demanded Quantity Supplied $1...
question 3 The following table describes the market for waffles. Price Quantity Demanded Quantity Supplied $1 110 20 $2 90 60 $3 70 100 $4 50 140 Use the information in the table to find the equilibrium price and quantity in this market For price please enter your answer as a numerical response rounded to the nearest cent (ie. 5.00 or $5.50 not 5 or "Five dollars"). For quantity please enter your answer as a whole number (ie. 60 not...
Q 5 You decide to start a new taxi service in your spare time. The first...
Q 5 You decide to start a new taxi service in your spare time. The first thing you need to do is buy a car. After visiting Mr. Charming Salesman at Sundance Used Cars, you have narrowed your choice to 3 possibilities. The three cars you can afford and their yearly net revenues (fares - gas & maintenance) are listed below. Remember each car must be replaced when it finally dies if you are to remain in business. Assuming an...
1. If money supply increased by 3%, real output increased by 1%, and prices increased by...
1. If money supply increased by 3%, real output increased by 1%, and prices increased by 2%, is money neutral? why? 2. If you responded to the previous subquestion that money is neutral, what needs to be changed for money to become non-neutral? 3. According to the quantity of money, if money stock is equal to 15 trillion euro, real GDP is 20 trillion euro, and price index is 1.1, what is V? 4. How do you interpret the number...
Visit the NASDAQ historical prices weblink. First, set the date range to be for exactly 1...
Visit the NASDAQ historical prices weblink. First, set the date range to be for exactly 1 year ending on the Monday that this course started. For example, if the current term started on April 1, 2018, then use April 1, 2017 – March 31, 2018. (Do NOT use these dates. Use the dates that match up with the current term.) Do this by clicking on the blue dates after “Time Period”. Next, click the “Apply” button. Next, click the link...
If a good is a normal good, its Engel curve should be Question 1 options: decreasing...
If a good is a normal good, its Engel curve should be Question 1 options: decreasing None of the other answers is correct a horizontal line increasing Question 2 (0.5 points) Which of the following claims about inferior goods is correct? Question 2 options: If a good is inferior, it will be so at all income levels (for the same individual) If a good is inferior it must be low quality When income goes up, the quantity demanded of the...
Read carefully the attached document and then post your comments bearing in mind the following questions:...
Read carefully the attached document and then post your comments bearing in mind the following questions: 1- What are the pros and cons of rent controls? 2- Why economists disagree on the usefulness of rent control? 3- Do you believe rent control can help the poor? Do rent controls work_ - The Economist explains.pdf If no link is opened containing the answers to be extracted This is the content .. Do rent controls work? Publication info: The Economist (Online) ;...
1. What is the relationship between price elasticity of demand and revenues? How do you find...
1. What is the relationship between price elasticity of demand and revenues? How do you find the elasticity at any point on a linear demand curve? 2. What is the marginal utility of a dollar? How does our understanding of the rational consumer allow us to interpret demand as a schedule of marginal benefits? 3. Solve the consumer’s problem when utility is logarithmic, so that the marginal utility of an apple, say, is equal to 1/Qa, where Qa is the...
The Consumer Price Index             The Consumer Price Index represents the average price of goods that...
The Consumer Price Index             The Consumer Price Index represents the average price of goods that households consume. Many thousands of goods are included in such an index. Here consumers are represented as buying only food (pizza) and gas as their basket of goods. Here is a representation of the kind of data Bureau of Economic Analysis collects to construct a consumer price index. In the base year, 2008, both the prices of goods purchased, and the quantity of goods...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT