Question

The market equilibrium for taxi service is shown by point a in the diagram to the right with a price of $3.00 and a quantity of 10,000 miles of service per day (100 taxis and 100 miles per taxi) Taxi Medallions 6.40 6.00- 5.60- 5.20- 4.80- 4.40- Supply w/ 80 medallions A medallion policy reduces the quantity of taxi service to less than 10,000 miles per day (80 taxis and 100 miles per taxi) A consumer who is on the demand curve halfway between points c and a would be willing to pay S for a mile of taxi service. (Enter your response to two 4.00- 3.60 3.60 Supply decimal places.) 3.20- а 2.80-2.60 A supplier who is halfway between points b and a on the supply curve will be 2.40- willing to supply a mile of taxi service at a price of S(Enter your response to b 2.00- 1.60- 1.20-100 0.80- Demand two decimal places.) This transaction occur at the current price. 0.40- 10,000 0.00- 0 15,000 5,000 10,000 Miles of taxi service per day Price per mile ()

Answer 1

Po *Afles finad ing pices Diaus perpebolicu lay to Derm and Cuovel 3.6 3.30 Supply ave to fid mid point .Depan d 1000D Miles pes clay The roedallion inceased the Psive to 36dper me, fom point@) 3.00. Fo 3 there oas 10000 miles per day sesvites.The consumer on the haltisa beuocen Canda,oil be at Z'. Take the aueage pite for point to d Pice ot Z is Hoto isU 3.6t3 3.30 Oas pespendicu- lar to Demand ave * Z poice = 2 i the point, at the middle of b anda' Pice ol gis avea / of Psice ata'and B +. Price at 3t26 0 .This bonsactio0 oon't occur at the amerl Price 360 Beccuse, mininmum paice is 3 bo is 8000 miles and mairuo quantity Be So 3.303 and 28 are less than fhan is greates Crsent price also day 000 iles o1 senvicd pees