One Year, the Government Boosted Regulated Taxi Fares in New

question 276

Multiple Choice

One year, the government boosted regulated taxi fares in New York City by 15 percent with the expectation that the total revenue from taxi rides would also increase by 15 percent. The taxi commission that authorized this fare increase must have believed that the demand for taxi service was

• A) elastic, but not perfectly elastic.
• B) inelastic, but not perfectly inelastic.
• C) unit elastic.
• D) perfectly inelastic.

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Definitions:

Reward Power

The capability of an individual, often a leader or manager, to influence the behavior of others by offering incentives or rewards for certain actions or outcomes.

Coercive

Relating to the use of force or intimidation to obtain compliance.

Selfish Reasons

Motivations or justifications for actions that prioritize one's own benefits or interests above others'.

Downward Influence

The impact or control exerted by individuals in higher positions within an organization upon those in lower positions.