Question: 2. How does the strike impact the market for rides? What other market mechanisms are in piace regarding rides ? (HINT: Think prices) The strike

2. How does the strike impact the market for rides? What other market mechanisms are in piace regarding rides ? (HINT: Think prices) The strike will lower the supply of taxi rides in Rome since the drivers refuse to drive. While one might think the equilibrium price will increase, it actually doesn't change since there is a price ceiling set in place (1.50 euro to enter a cab). The quota will also shift further from the original equilibrium point

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