The following figure shows the supply and demand for Uber rides in downtown Miami. On New Year's Eve the demand for Uber rides in downtown increases significantly.

-Refer to the figure above.Which statement is true?
A) The line D₁ represents the demand on ordinary days, and the the line D₂ represents demand on New Year's Eve.
B) The Uber fare on New Year's Eve is kept lower than its equilibrium amount.
C) There will be a shortage of Uber rides in downtown Miami if this market is left unregulated.
D) There will be a surplus of Uber rides in downtown Miami on New Year's Eve.

Question

The following figure shows the supply and demand for Uber rides in downtown Miami. On New Year's Eve the demand for Uber rides in downtown increases significantly.
 
-Refer to the figure above.Which statement is true?
A) The line D₁ represents the demand on ordinary days, and the the line D₂ represents demand on New Year's Eve. 
B) The Uber fare on New Year's Eve is kept lower than its equilibrium amount. 
C) There will be a shortage of Uber rides in downtown Miami if this market is left unregulated. 
D) There will be a surplus of Uber rides in downtown Miami on New Year's Eve.

Quizplus · Accepted Answer

The figure shows two demand curves, with D₁ representing the demand on ordinary days and D₂ representing the demand on New Year's Eve.

The Following Figure Shows the Supply and Demand for Uber