Example 8.7 on pages 300-301 of the book considers the supply of taxi cabs in New York City. The authors argue that without any restriction, the supply curve of taxi cabs in the city would be highly elastic. Clearly explain their reasoning behind this claim. Can you think of some reasons why the supply curve might not be quite as elastic as the authors claim
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Example 8.7 on pages 300-301 of the book considers the supply of taxi cabs in New York City. The aut...
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