Uber uses what is known as surge pricing to set prices based on the number of people who request rides at a given time in a given area.Based on this pricing method, prices will
A)fall when supply decreases.
B)rise when supply increases.
C)rise when demand increases.
D)rise when demand decreases.

Question

Quizplus · Accepted Answer

Surge pricing is based on the balance between supply and demand. When demand is high, prices will increase to encourage more drivers to come on the road and meet the increased demand. Therefore, option C is correct as prices will rise when demand increases.

Uber Uses What Is Known as Surge Pricing to Set