Uber increases prices when there is high demand for taxi services. This is known as:
A) price skimming
B) social pricing
C) price sensitivity
D) framing
E) surge pricing

Question

Quizplus · Accepted Answer

Uber's practice of increasing prices during periods of high demand is commonly referred to as surge pricing. This allows Uber to balance out the supply of drivers with the demand for rides, and ensures that those who really need a ride are willing to pay more for it. While this has been controversial, as some feel it takes advantage of customers in need, it's ultimately a way for Uber to maintain a sustainable business model.

Uber Increases Prices When There Is High Demand for Taxi