The figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $35 but then falls to $5 due to a recession. What is the price elasticity of demand for taxi rides? Using the midpoint formula, the price elasticity f demand is. (Enter your response rounded to two decimal places.) Demand is 98 99 axi ride 60 55 50 Price (dollars pe 35 30- 15 10- o A B D 40,000 80,000 120,000 160,000 200,000 240,000 Quantity (taxi rides per day) Q ✔

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