Uber Uses a Pricing Strategy Based on Real-Time Market Conditions

question 255

Multiple Choice

Uber uses a pricing strategy based on real-time market conditions. It charges less in periods of low demand and more during periods of high demand. Sometimes these prices double or triple during periods of high demand. Uber argues that these higher prices motivate more drivers to pick up passengers, thus increasing the supply of drivers needed to handle the additional demand. This demand-based pricing strategy is an example of

• A)special-event pricing.
• B)penetration pricing.
• C)dynamic pricing.
• D)cost-plus pricing.
• E)reference pricing.

---

Definitions:

Evolved

Refers to the cumulative changes in heritable traits of a population over successive generations, leading to biodiversity.

Acheulean Technology

A Stone Age technology characterized by distinctive oval and pear-shaped hand-axes, associated with early humans, particularly Homo erectus.

Genus Homo

The genus to which modern humans belong, characterized by higher mental faculties, upright posture, and bipedal locomotion.

Oldowan Tools

The earliest known stone tool industry, dating back to about 2.6 million years ago, associated with Homo habilis and used by early hominins for cutting, scraping, and processing animal and plant materials.