Why is it difficult to get a cab on a rainy day?
A)Cab drivers have backward bending daily supply curve
B)Cab drivers must drive much slower when it rains
C)The demand for cabs shifts left and the quantity of cabs supplied falls
D)Cabs don't like to work on rainy day

Question

Quizplus · Accepted Answer

Cab drivers have a backward bending daily supply curve, meaning they aim to earn a target income. On rainy days, they reach their target quicker due to higher demand and stop working sooner, reducing cab availability.

Why Is It Difficult to Get a Cab on a Rainy