Taxi Fares in Cleveland Are Set by the City Government

Multiple Choice

Taxi fares in Cleveland are set by the city government.Suppose that the local taxi companies petition the city council to raise taxi fares.Despite the fact that higher fares will ________ the quantity demanded for taxi cab rides,the taxi companies must believe that demand for taxis is ________ and therefore that revenue will ________.

A) decrease; inelastic; increase
B) decrease; elastic; increase
C) decrease; inelastic; decrease
D) increase; inelastic; increase