There are many possible ways to limit the number of cabs in a city. The most common method is an explicit quota using a fixed number of medallions that are good forever and can be resold. One alternative is to charge a high license fee each year, which would reduce supply by as much as would a medallion or license that lasts only a year. A third option is to charge a daily tax on taxicabs. Using figures, compare and contrast the equilibrium under each of these approaches. Discuss who wins and who loses from each plan, considering consumers, drivers, the city, and (if relevant) medallion owners.

1. General Equilibrium