Uber Uses What Is Known as Surge Pricing to Set

question 191

Multiple Choice

Uber uses what is known as surge pricing to set prices based on the number of people who request rides at a given time in a given area.Based on this pricing method, prices will

• A)fall when supply decreases.
• B)rise when supply increases.
• C)rise when demand increases.
• D)rise when demand decreases.

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Definitions:

Buyer

An individual or entity that purchases goods or services for personal use or for the purpose of resale.

Tax Revenue

Income that is gained by governments through taxation, which is then used to fund public services and government commitments.

Government Benefit

A form of financial or in-kind assistance provided by the government to individuals, groups, or organizations.

Tax Revenue

The income collected by governments through the imposition of taxes on goods, income, and activities.