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

question 305

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:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, prompted by financial scandals.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period of time.

Internal Control Procedures

These are policies and procedures put in place by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Short and Over

An account that stores any discrepancies between the expected cash count and the actual amount of cash present, reflecting errors or theft.