Final answer:
An FHV driver may refuse a passenger only if there is a reasonable belief the passenger cannot pay for the ride, as per TLC's rules against discrimination. Refusing service based on perceived economic status or sexual orientation is illegal.
Step-by-step explanation:
According to the TLC (Taxi and Limousine Commission), an FHV (For-Hire Vehicle) driver may refuse service to a passenger under certain circumstances. However, these rules are strictly regulated and based on specific situations, not on discriminatory grounds. For instance, an FHV driver can refuse a passenger if there is a reasonable belief that the passenger cannot pay for the ride.
The concept of 'effective demand' is relevant here, as a person must be both willing and able to pay for a service to have this demand; without the ability to pay, there is no effective demand. On the contrary, it is illegal to refuse service based on prejudiced reasons such as the passenger's perceived economic status or their sexual orientation. Therefore, refusing service because the passenger looks poor or seems to be homosexual is not allowed and would be against the anti-discrimination policies enforced by the TLC.