When companies like Uber and Lyft join the ride-share market, what would we most likely expect to see cab drivers do to their pr
1 answer:
We would most likely expect to see cab drivers reduce their prices.
<h3>Why would cab drivers reduce their prices?</h3>
When Uber and Lyft join the ride-share market, there would be an increase in the supply of cab drivers. As a result, the supply curve for cab drivers would shift to the bright. This would increase equilibrium quantity and reduce equilibrium price.
Please find attached a curve that depicts an increase in supply. To learn more about supply, please check: brainly.com/question/14727864
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