When looking for an Uber car during rush hour,a customer notices that the same ride that she took earlier in the afternoon is three times more expensive.What explains this?
A)Uber's surge pricing model adjusts prices to better match supply and demand for its services.
B)Uber uses predictive analytics to run real-time pricing experiments.
C)Uber uses a pricing model that is based on a customer's ability or desire to pay for its services.
D)Uber has a one-price policy,but rides in the afternoon and rides in the evening are not considered to be under the "same conditions."
E)Uber needs to pay its drivers more in the evening due to overtime laws.

Question

Quizplus · Accepted Answer

Uber's "surge pricing" model adjusts prices to better match supply and demand for its service.When Uber sees demand for rides significantly exceeds supply,prices are increased in an effort to raise the supply of drivers and reduce the demand for riders.Prices will fall back to normal when supply and demand stabilize.

When Looking for an Uber Car During Rush Hour,a Customer