Supply-demand relationship of cabs

This paper mainly discusses the relationship of supply-demand after strengthening the regulations of cab companies. Aiming to find the balance point from Demand function and Supply function, we build the equilibrium price decision model. Because of the banning of nonstandard cabs, the number of cabs will drop without new supplies. Following by it, there would be an inflation of prices. On the other hand, there will be more residents to ride a cab because quality of service improved.