Taxi Industry Medallions
Not what you're looking for?
Many cities regulate the taxi industry by licensing cabs. These licenses are often called medallions because they are issued in the form of a metal shield that must be affixed to the hood of the cab, where enforcement officials can easily see it. Furthermore, most cities regulate the fares that taxis can charge, while taxi medallions are sold and bought in the free market. Suppose you are elected a City Council Person. At a city council meeting, the Taxi Cab Owners Association argued for a far increase. They note that the market price to buy or rent taxi medallions has been rising, and with these higher costs, profitability is reduced.
Evaluate this argument, and decide your vote whether to approve a fare increase or not proposed by the Taxi Cab Owners Association.
Purchase this Solution
Solution Summary
Regulating the taxi industry
Solution Preview
In our economy, it is a basic rule of thumb that as costs increase, so do prices. If the price to buy or rent taxi metdallions has increased while the fare rates have not, it is fair to argue in favor ...
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.