5.3 In 2012, two Oakland City Council members called for slashing the annual fees the city charges for taxi medallions from $1,019 a year to $510 (Matthai Kuruvila, “Cheaper Oakland Taxi Medallions Proposed,”

San Francisco Chronicle, December 17, 2012). They say that they want to help cab drivers.

Cab companies own and pay for the medallions.

These companies charge drivers $500 a week to use the cabs. Would cutting the annual medallion fee help drivers? Explain.