You are a member of the Metropolitan Taxi Commission, which sets taxi fares for

Question

You are a member of the Metropolitan Taxi Commission, which sets taxi fares for your city. You have been told that long lines of taxis form at the airport during off peak hours. At peak hours, on the other hand, few taxis are available and long lines of passengers waiting for cabs. It is proposed that taxi fares from the airport to downtown be cut by 10 percent during off peak hours and increased by 10 percent during peak hours. How do you think these changes would affect the queuing patterns of taxis and passengers? Do you think the proposal is a good one from the passengers

Explanation / Answer

the pattern will change as during peak hours more taxis will be available and hence less crowds of passengers , similarly during peak off hours , as fares have been decreased , less no. of taxis will be there it will be better for economy and passengers and bad for cabbies , if taxi owners and passengers will negotiate , fares will rise

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