Of Demand and Supply..

Was discussing this with wife that day..

In government's effort to manage high demand of taxis in town, they choose to increase price so that demand will drop.. supply will be enough..

Now that some taxis are complaining that there isn't enough passengers(demand drop), would the price be decreased to lower levels so that demand can much supply?

Simple solution right? Lower price of increase so that people will take cab again, yes? No, i doubt the government will do that..

Instead.. since people are turned off my increase in price of taxi, but they still need to move around, they take buses and MRT.. so our dear government will likely increase Bus fare and MRT fare to deal with the "problem" that they create..

This is my prediction.. bus and MRT fare will rise once again, citing taxi fare increase as a reason.

That's the brilliant way our multi-millionaires solves our problems..






Mark my words, watch this space