Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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