Taxicab fares in Cleveland are subject to maximum price regulations set by the city government.

Taxicab fares in Cleveland are subject to maximum price regulations set by the city government. Suppose that the local taxi companies petition the city council to raise the fares to generate higher revenues. A local citizen action group opposed to the fare increase claims that any increase in fares will actually lead to lower taxi revenues. Based on these views:If, when buying a car, the seller suspects you have an ELASTIC demand, then he or she is likely to: