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Business, 02.03.2020 22:40 tiwaribianca475

Consider two cities, City A and City B, which are entirely identical except that Uber operates in City A, but not in City B. Consumers in City A can choose between Uber and a taxi when selecting a means of transport, while consumers in City B can travel only via taxi. When the government imposes a tax on taxis in City A and City B, the price of a taxi ride will increase in City A than in City B.

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