Because no cabs were actually available at that price: they were all taken. When there is scarcity, there are three ways to solve it: - allocating to those who

Because no cabs were actually available at that price: they were all taken. When there is scarcity, there are three ways to solve it: - allocating to those who exchange (pay) most - allocating based on lottery - allocating based on nepotism We now know what the politicians there prefer.