-Figure 6.8 shows the market for taxicab services in a small town.If the government limits taxicab services to 20 per day,the price per mile traveled will be

Question

Quizplus · Accepted Answer

When the government limits taxicab services to a specific quantity, such as 20 per day, the price adjusts to where the quantity supplied equals the quantity demanded at that limit. Without seeing Figure 6.8, we can infer that if option C is correct, the price per mile traveled would adjust to $2.00 when the quantity is fixed at 20 per day, assuming this option aligns with the intersection point on the supply and demand graph provided in the figure.

-Figure 68 Shows the Market for Taxicab Services in a Small