Economics The Supply And Demand Curve Essay - 1441 Words

Introduction This term paper would discuss Uber’s pricing in term of facing the fundamental concept of economics: the supply and demand curve. Uber is one of the pioneers of ride-sharing and its’ brand name has dominated headlines over the past year alongside mentions of the â€Å"sharing economy†. The Uber’s pricing that would be discussed is their surge price, because this volatile pricing will impact their demand within their limited supply of drivers, and important factor to survive from the competition between other transportations services, either online transportation applications or conventional transportation services, such as taxi cab, commercial car pool, and limo. These Uber’s surge price relates to price setting and price discrimination of microeconomics study. Facts/ History Taxi markets have long needed innovation. In theory, the entry should be easy—all that is needed is a car and a driving license—with new drivers keeping cab fares close to costs. Yet in many cities, cabs are far from that competitive ideal. Decades of regulation conspire to keep entrants out. Taxi markets often end up suspiciously clubby, with cabs in short supply and fat profits for the vehicle owners. Antitrust concerns have been raised in Australia, Ireland, and Bulgaria among others. Uber goals to switch all of this. Uber launched in San Francisco in 2010 it lets passengers hail drivers from their smartphones—a move requiring even less effort than extending your arm. Some vehicles areShow MoreRelatedEconomics An Overview: Article Analysis Essay1392 Words   |  6 Pagesbusiness objectives. Economics used as a tool to solve coordination problems. They include what and how much product to produce, how to produce their product, and for whom they are producing. In order to effectively answer these questions, economics is used. Colander (2006) describes economics as â€Å"the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society† (p. 4). The foundation of economics is based on severalRead MoreThe Demand And Supply Theory Of Microeconomics1055 Words   |  5 PagesAccording to Samuelson and Nordhaus, â€Å"economics is a dynamic science and is central t o the concerns and problems around the globe† (2003). Microeconomics covers the micro aspects viz. fundamentals, elements of demand and supply, costs, production formation, revenue, markets etc. (Samuelson and Nordhaus, 2003). With that being said, a good knowledge of these above listed aspects is necessary for management students as well as managers. 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