Not sure how to solve this problem.Please help.

In 2004, New York City's Taxi and Limousine Commission (TLC) auctioned 900 new medallions - or permits to operate taxis, a 7 percent increase over the existing 12,187. At the same time, all cab owners benefitted from a 26 percent fare increase in the fare which has been regulated by the TLC. The regulated fare-per-mile went up by 50 cents. Critics of the policy change have pointed out that the shortage of cabs in NYC remained even afterwards. [Note: For the following analyses, use supply/demand graphs. You do not need to include the above numbers - a qualitative analysis is sufficient]

A. Use supply and demand curves to illustrate the situation in the market for cab rides before the two simultaneous decisions to expand the number of medallions and to raise the regulated fare. Use Q="passenger miles" and assume that cabs are operated full-time (what does this tell you about the elasticity of supply?)

B. Use supply and demand curves to illustrate the situation in the market for cab rides after the two simultaneous decisions to expand the number of medallions and to raise the regulated fare. Be careful to highlight the effects of these decisions in comparison with the answer in part A) above.

C. What factors will determine the price of the medallions sold at the 2004 auctions? Explain. [no calculations needed]

D. Discuss how that new price will compare with prices at which the medallions were trading just prior to the announcement of the two changes? Explain!