Suppose the Government Limits the Number of Cabs That Can

Multiple Choice

Suppose the government limits the number of cabs that can operate in the city by issuing a limited number of medallions.Later,if the government decides to regulate fares instead and sets them below current levels:

A) surpluses will result in the taxicab market.
B) the resale value of the medallion will fall.
C) the demand for taxicabs will decline.
D) congestion during peak traffic hours will decrease.