Suppose That the Market for Cab Rides Is Initially in Long-Run

Multiple Choice

Suppose that the market for cab rides is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for cab rides. In the short run, the typical cab driver is likely to:

A) earn an economic profit.
B) incur an economic loss.
C) have no change in its economic profit.
D) have neither an economic profit nor an economic loss.