Question: Since Uber has entered the transportation market, taxi services have declined significantly. Using economic terms, explain why might that be the case and given that the New York Taxi market is subject to a quota, explain how has Uber's entrance into the transportation impacted the value of medallions (recall that the wedge represents the value that accrues to license holders)? Some of Gene Freidman's taxi companies had to file bankruptcy due to a "liquidity problem." When Gene, and other medallion holders, bought the medallions they typically would take out loans to purchase the medallions.The loan represented the value of the medallion at the time. Explain what would happen when the price of medallions drops and less folks are using taxis, and explain why taxi companies are fighting Uber and Lyft.