QUESTION 2 Mike notices that taking an Uber (ride-share service where price fluctuates with supply and demand) from his law firm's office in the city to his home normally costs $9 Monday to Thursday nights (x1 rate). But on Friday nights, as there are many people in the city drinking, the Uber costs up to $27 (x3 rate). Which of the following statements are true: Ceteris paribus, there should be less Ubers driving around on a Friday night due to the increased prices according to the law of supply. Ceteris paribus, Mike is more likely to take the bus home on a Friday night. Ceteris paribus, an Uber driver's working hours (individual quantity supplied) should increase on a Friday Night according to the law of supply. Ceteris paribus, an Uber driver will work more on a Tuesday night rather than a Friday night because of the higher rates, according to the law of supply.

QUESTION 2 Mike notices that taking an Uber (ride-share service where price fluctuates with supply and demand) from his law firm's office in the city to his home normally costs $9 Monday to Thursday nights (x1 rate). But on Friday nights, as there are many people in the city drinking, the Uber costs up to $27 (x3 rate). Which of the following statements are true: Ceteris paribus, there should be less Ubers driving around on a Friday night due to the increased prices according to the law of supply. Ceteris paribus, Mike is more likely to take the bus home on a Friday night. Ceteris paribus, an Uber driver's working hours (individual quantity supplied) should increase on a Friday Night according to the law of supply. Ceteris paribus, an Uber driver will work more on a Tuesday night rather than a Friday night because of the higher rates, according to the law of supply.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 1DQ

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