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The demand for trips by taxi is given by the equation Qd = 1000 + 50G...

The demand for trips by taxi is given by the equation Qd = 1000 + 50G -4E – 400P, where P is the taxi fare, E is the average speed of a trip by private automobile, and G is the price of gasoline. The supply of trips by taxi is given by Qs = 200 – 30G +100P. b. At the equilibrium values, calculate the price elasticity of demand and the price elasticity of supply for taxi rides.

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