Question

Write RAINY or SUNNY after each:

(6) In which weather is the demand for taxi cabs likely to be LARGER?

     

(7)In which weather is the demand for taxi cabs likely to be MORE ELASTIC?

(8) In which type of weather would the taxi driver like to charge a HIGHER

     PRICE ? Explain in a few words.

Answer 1

(6) In rainy weather the demand of taxi cabs likely to be larger , because in normal or sunny days there are some consumers who can travel by other means of transportation which is only available in sunny days like bike or scooter or some prefer by foot ,but in rainy days consumer has to be use taxi cab as an mean of transportation ,because in some case of emergency this is the only way by which he can go through fast and safe.

(7) In sunny weather demand of taxi likely to be more elastic because in that time consumer has more choices/options in the ride as compared to the rainy weather because at that time prices are hiked up due to increase in demand so in sunny day demand is bit lesser so prices are shifted downwards and many options are being there for consumer.

(8) In rainy weather taxi drivers are likely to charge higher prices because at time the demand increase but supply remain constant so there we see higher prices in ride.