Suppose that the free-market equilibrium price of downtown-to-airport taxi service would be $45 per trip,but in an effort to protect taxi owners the government has fixed the price at $60 per trip.At this legislated price the quantity ________ will be greater than the quantity ________,resulting in a ________ of downtown-to-airport taxi services.
A)demanded; supplied; surplus
B)supplied; demanded; surplus
C)demanded; supplied; shortage
D)supplied; demanded; shortage
E)demanded; supplied; reduction in equilibrium price

Question

Quizplus · Accepted Answer

At a price of $60, which is above the equilibrium price of $45, the quantity supplied will exceed the quantity demanded, resulting in a surplus of taxi services.

Suppose That the Free-Market Equilibrium Price of Downtown-To-Airport Taxi Service