The cab fare in Horseville is regulated. Recently, the government decided to raise it from $2.00… 1 answer below »


The cab expense in Horseville is regulated. Recently, the government ruled to educate it from $2.00 to $2.50 per ride. Succeeding this loosen in expense, cab ridership decreased by 10 percent. a) What is the expense elasticity of insist for cab rides in Horseville? Explain your exculpation (10 marks) b) According to your consider, what happened to the cab drivers' produce succeeding the expense rose? Explain. (5 marks) c) Why strength your consider of elasticity be defective? (5 marks)