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:

Doctor

A qualified individual who practices medicine, diagnosing and treating diseases or injuries.

Title

Legal right to own, use, or sell a particular property or asset.

Right of Ownership

The legal right to possess, use, and dispose of property without unlawful constraint.

Sale of Goods Act

A statutory regulation that governs the sale and purchase of goods, ensuring certain standards are met regarding the quality, fitness, and description of the goods.