The fare elasticity of 0.22 indicates that the value of a fare increase to the
taxi industry is somewhat reduced by the concurrent decline in trip demand.
The good fit of the model over both pre- and post-fare increase periods
indicates that fare elasticities apply both when the fare goes up and when the
fare is eroded by inflation.
There is no evidence that a fare change’s impact on demand diminishes
over time—i.e., no evidence of a “sticker shock” that wears off. A caveat
should be offered, however, because the fare increase occurred only 10 months
before the end of the study period.