Use the figure below to answer the following question. 
Figure 14.1.1
In the figure,D is the demand curve for taxi rides in a town,and ATC is the average total cost curve of a taxi company.
-Refer to Figure 14.1.1.In the scenario above,the market is
Definitions:
Substitution Effect
The change in consumption patterns due to a change in relative prices, leading consumers to substitute a product with a cheaper alternative.
Income Effect
The change in consumption resulting from a change in real income, typically due to a change in prices, that can increase or decrease purchasing power.
Affordable Consumption Options
Choices of goods and services that are within the financial reach of a consumer, considering their income and expenses.
Inferior Goods
Goods whose demand decreases when consumer income rises, opposite of normal goods.
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