Equation 2: Service availability
Like fare revenue, availability is a function of economic activity, taxi fares,
bus/subway fares and supply. In each case, the influence is the opposite of that
expected for revenues. As economic activity rises more people seek to use
taxicabs and service availability declines. A taxi fare increase should expand
availability as fewer people desire to take cabs. Conversely, a bus/subway fare
increase may reduce availability as passengers switch away from public
transportation. Finally, an expansion of supply should improve availability.