Even if the City Council fixed high minimum taxi fares and gave licenses to operate to only a few cab owners, license holders would not earn large profits from operating taxis in the city because
A) people would drive their own cars.
B) people would substitute buses for taxis.
C) taxis are not a necessity of life.
D) the cost of owning a license would eat up the potential profits from operating a taxi.
E) the demand would fall as taxi fares rose.
D
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Sales taxes are
A) assessed on the prices paid on a large set of goods and services. B) levied on purchases of a particular good or service. C) based on each individual taxpayer's income level. D) collected only by the U.S. government.
Suppose that in 2018, all prices in the economy double and that all wages and salaries also double. In 2018 you
A) are worse off than you were in 2017 as you can no longer afford to buy as many goods and services. B) are better off than you were in 2017 as your salary is higher than it was in 2017 and you can now buy more goods and services. C) are no better off or worse off than you were in 2017 as the purchasing power of your salary has remained the same. D) cannot determine whether you are better off or worse off than you were in 2017, because the purchasing power of your salary cannot be determined.