The Taxicab Fare in Newville Is Regulated

question 371

Multiple Choice

The taxicab fare in Newville is regulated. The fare currently charged is $6 a ride. Newville taxicab drivers want to obtain government's permission to lower the fare, which they think will increase their total revenue. From this we can conclude that the drivers believe that the demand for taxicab rides is

• A) elastic.
• B) inelastic.
• C) unit elastic.
• D) perfectly inelastic.

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Definitions:

Legitimate Power

Authority or influence that is recognized and accepted by others as valid or rightful within a social or organizational context.

Social Structure

The organized pattern of social relationships and social institutions that compose a society.

Obedience

The act of following orders or directives from an authority figure, often without question or critical analysis.

Social Structures

The organized pattern of social relationships and social institutions that together constitute society.