How would removing medallion system affects NY taxi?

Question

If New York City had no medallion system for taxicabs, the price of a taxicab ride would:

A) increase because of the higher safety hazards.

B) not change from its current level.

C) decrease.

D) increase, but only slightly.

Answer 1

C) decrease. - there is no entry barriers in taxi-service, so supply will increase making service more competitive.

Answer 2

I say it would decrease (C)  because other people can get in the business and an increase of supply (cabs) would increase competition and supply moving the price down.