When the Price of Taking a Ride in Uber Increases,the

question 130

Multiple Choice

When the price of taking a ride in Uber increases,the demand for Lyft rides increases,ceteris paribus.Uber and Lyft are therefore

• A)Elastic.
• B)Inelastic.
• C)Complements.
• D)Substitutes.

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Definitions:

Stock Price

The current market price at which a share of a company's stock can be bought or sold.

Volatile

Describes an asset, security, or market characterized by rapid and significant price changes over a short period.

Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at an agreed-upon price within a certain period.

Strike Price

The pre-determined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.