QUESTION 2 Uber provides point to point car transport services in Brisbane. The typical Uber service is called UberX. Uber also offers a service called UberSelect, a premium service that uses expense, newer cars. UberSelect costs approximately 40% more for customers than UberX. Which of the following statements are true: UberSelect is an example of third degree price discrimination. UberSelect is an example of using peak load pricing. Charging the same price for UberX and UberSelect would give Uber greater profits. The decision to charge customers more for UberSelect is a result of their demand being more elastic than UberX customers.
QUESTION 2 Uber provides point to point car transport services in Brisbane. The typical Uber service is called UberX. Uber also offers a service called UberSelect, a premium service that uses expense, newer cars. UberSelect costs approximately 40% more for customers than UberX. Which of the following statements are true: UberSelect is an example of third degree price discrimination. UberSelect is an example of using peak load pricing. Charging the same price for UberX and UberSelect would give Uber greater profits. The decision to charge customers more for UberSelect is a result of their demand being more elastic than UberX customers.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter14: Indirect Price Discrimination
Section: Chapter Questions
Problem 14.2IP
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![QUESTION 2
Uber provides point to point car transport services in Brisbane. The typical Uber service is called UberX. Uber also offers
a service called UberSelect, a premium service that uses expense, newer cars. UberSelect costs approximately 40%
more for customers than UberX.
Which of the following statements are true:
UberSelect is an example of third degree price discrimination.
UberSelect is an example of using peak load pricing.
Charging the same price for UberX and UberSelect would give Uber greater profits.
The decision to charge customers more for UberSelect is a result of their demand being more elastic than UberX
customers.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1b4476a-d7dd-47a3-b766-1c0253821d0e%2Ff68f9eda-64ba-4485-b41a-7455b8f1e4b9%2Fy96mcxp_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 2
Uber provides point to point car transport services in Brisbane. The typical Uber service is called UberX. Uber also offers
a service called UberSelect, a premium service that uses expense, newer cars. UberSelect costs approximately 40%
more for customers than UberX.
Which of the following statements are true:
UberSelect is an example of third degree price discrimination.
UberSelect is an example of using peak load pricing.
Charging the same price for UberX and UberSelect would give Uber greater profits.
The decision to charge customers more for UberSelect is a result of their demand being more elastic than UberX
customers.
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