The alternative to the Uber pricing model is the taxi pricing model where a government commission set a flat price per ride (think of it like a price ceiling). Suppose that a local government is considering forcing Uber to charge the same rate as taxi companies. The goal this week is to use what we learned about welfare to advice the government on this policy. Individually complete an initial draft of analysis about the policy. Remember to focus on the positive aspect and not the normative. If you want to use a graph of supply and demand to illustrate your argument, something simple, like linear, is fine.
The alternative to the Uber pricing model is the taxi pricing model where a government commission set a flat price per ride (think of it like a
Individually complete an initial draft of analysis about the policy. Remember to focus on the positive aspect and not the normative. If you want to use a graph of
A price ceiling is the commanded maximum sum a vender is permitted to charge for an item or administration. Normally set by regulation, price ceilings are commonly applied to staples, for example, food and energy items when such products become unaffordable to customary purchasers. A price ceiling is a sort of cost control.
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