Recall the Application About the Response of New York City

question 3

Multiple Choice

Recall the Application about the response of New York City cab drivers to an increase in cab fares to answer the following question(s) .
-Recall the Application. A study of the taxi market in New York City showed that when cab fares increase, thereby increasing the wages of cab drivers

• A) the income effect for leisure demand outweighs the substitution effect for leisure demand.
• B) the substitution effect for leisure demand outweighs the income effect for leisure demand.
• C) the income effect for leisure demand and the substitution effect for leisure demand work in the same direction, causing the labor supply to increase.
• D) the income effect for leisure demand and the substitution effect for leisure demand work in the same direction, causing the labor supply to decrease.

---

Definitions:

Economical

Economical pertains to the efficient and judicious use of resources, often with the aim of minimizing cost and waste while achieving a specific purpose or outcome.

Simple Design

The creation of a product or solution that is straightforward, easy to use, and free of unnecessary complexity.

Network Organization Design

A flexible approach to structuring an organization where coordination is achieved through informal networks and relationships rather than through a formal hierarchical structure.

Special Knowledge

Expertise or advanced understanding in a particular area or field, distinguishing an individual from the general population.