If no tax is put in place, the equilibrium price is $ _____ per Uver ride.With the tax in place, the price paid by buyers per Uver ride will increase to $ _________With the tax in place, the after-tax price per ride received by Uver drivers will be $ _________ In a small city, Uver, a new ride service, has become very popular with theyounger generation. The inverse demand for Uver rides is given byODp = 100.0012where Q is the number of rides demanded and p is the market price per ride. Theinverse supply of rides is given byp = 80.00 +The local government in this small city is concerned that young people will walkless, which will have a negative effect on their health. The governmentis, therefore, considering charging Uver drivers a tax of $7.00 per ride.

At equilibrium, Quantity demanded is equal to quantity supplied that is where demand and supply…

Answered: In a small city, Uver, a new ride…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If no tax is put in place, the equilibrium price is $ _____ per Uver ride.

With the tax in place, the price paid by buyers per Uver ride will increase to $ _________

With the tax in place, the after-tax price per ride received by Uver drivers will be $ _________

In a small city, Uver, a new ride service, has become very popular with the
younger generation. The inverse demand for Uver rides is given by
OD
p = 100.00
12
where Q is the number of rides demanded and p is the market price per ride. The
inverse supply of rides is given by
p = 80.00 +
The local government in this small city is concerned that young people will walk
less, which will have a negative effect on their health. The government
is, therefore, considering charging Uver drivers a tax of $7.00 per ride.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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