If Uber is unsuccessful in fighting the cap on the number of cars driving for ride-hailing companies in New York City, this will have the potential to raise the equilibrium price in this market. This would have a tendency to

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A cap on the number of cars limits the supply of ride-hailing services, leading to higher prices. This decrease in supply and increase in prices would decrease consumer surplus because consumers have to pay more or cannot get the service at all. It also increases deadweight loss because the market becomes less efficient; some consumers who value the service more than its cost are not served, and some potential rides that could have happened at the equilibrium price do not occur.

If Uber Is Unsuccessful in Fighting the Cap on the Number