The "Dynamic Pricing" Model Used by the Ride-Sharing fiRm Uber

question 177

Multiple Choice

The "dynamic pricing" model used by the ride-sharing firm Uber, along with a few other firms, illustrates which of the following?

• A) When there is shortage in a market, the equilibrium price will rise.
• B) Once the equilibrium price is reached, it will remain there for at least several days.
• C) Since actual quantity bought always equals actual quantity sold, the market is always at equilibrium.
• D) When there is surplus in a market, the equilibrium price will rise.

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Definitions:

Statistical Hypotheses

Statements made for statistical testing, often involving assumptions about a population parameter that can be tested against observed data.

Can Occur

Indicates the possibility or likelihood that an event or condition may happen.

Event

An occurrence or outcome in a probabilistic context, which can be one or more results of an experiment or random process.

Outcomes

The possible results or consequences that may stem from a specific action, event, or decision.