Suppose You Observe That Fares Per Trip for the Uber

question 90

Multiple Choice

Suppose you observe that fares per trip for the Uber share-riding service increased when more commuters called the Uber service. Which of the following is the best possible explanation?

• A)The law of demand was violated.
• B)The law of supply was violated.
• C)The price of gasoline went up.
• D)People were irrational.
• E)Commuters did not have any choice.

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Definitions:

Divestiture

The process of selling an asset or subsidiary by a company to optimize its portfolio or raise funds.

Strategic Thinking

The process of planning for the future by analyzing current trends, making predictions, and devising plans to achieve long-term objectives.

Purchase Method

An accounting technique used to consolidate the financial statements of two companies when one company acquires another.

Total Assets

The sum of all assets owned by a company, including cash, investments, property, and equipment, representing the total resources available for use in its operations.