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.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
Transcribed Image Text: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.
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