When Looking for an Uber Car During Rush Hour,a Customer

question 93

Multiple Choice

When looking for an Uber car during rush hour,a customer notices that the same ride that she took earlier in the afternoon is three times more expensive.What explains this?

• A)Uber's surge pricing model adjusts prices to better match supply and demand for its services.
• B)Uber uses predictive analytics to run real-time pricing experiments.
• C)Uber uses a pricing model that is based on a customer's ability or desire to pay for its services.
• D)Uber has a one-price policy,but rides in the afternoon and rides in the evening are not considered to be under the "same conditions."
• E)Uber needs to pay its drivers more in the evening due to overtime laws.

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Definitions:

Per Capita Real GDP

An economic measure that divides the real gross domestic product by the total population, indicating the average economic output per person, adjusted for inflation.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy in real terms.

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured using current prices without adjusting for inflation.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust nominal GDP to real GDP.