Suppose that a city law requires taxi drivers to wear tuxedos.The drivers must pay $10 per week for the tuxedos.Taxicab companies pay their drivers $210 per week.After paying for the tuxedos,taxi drivers earn $200 per week.

(i) If the law were revised so that taxicab companies, not the drivers, must pay for the tuxedos, what would happen to the taxi drivers' earnings?
(ii) If the law were repealed, what would happen to the taxi drivers' earnings? Be as specific as possible.

Question

Suppose that a city law requires taxi drivers to wear tuxedos.The drivers must pay $10 per week for the tuxedos.Taxicab companies pay their drivers $210 per week.After paying for the tuxedos,taxi drivers earn $200 per week.

(i)	If the law were revised so that taxicab companies, not the drivers, must pay for the tuxedos, what would happen to the taxi drivers' earnings?
(ii)	If the law were repealed, what would happen to the taxi drivers' earnings? Be as specific as possible.

Quizplus · Accepted Answer

The Answer of Suppose that a city law requires taxi drivers to wear tuxedos.The drivers must pay $10 per week for the tuxedos.Taxicab companies pay their drivers $210 per week.After paying for the tuxedos,taxi drivers earn $200 per week.

(i)	If the law were revised so that taxicab companies, not the drivers, must pay for the tuxedos, what would happen to the taxi drivers' earnings?
(ii)	If the law were repealed, what would happen to the taxi drivers' earnings? Be as specific as possible.

Suppose That a City Law Requires Taxi Drivers to Wear