The effect of an increased demand for digital taxi apps and non-taxi transportation services on the prices of the New York City taxi medallions.
Introduction:
Price elasticity-
Price elasticity and substitutes-For a given good/service, the higher the number of substitutes the higher the elasticity of demand. If there are more substitutes for a good X, an increase in its price will decrease the demand significantly.
The demand and supply analysis- Supply responds to demand in the long run. As the demand for a good/service in a market rises, the producers increase its supply to reap profits from the buyers increased
Taxi Medallions- It is a transferable permit in the United States allowing a taxi driver to operate.
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