Question: The ride sharing service Uber uses a surge pricing algorithm, allowing the platform to charge some multiple of the base price of any given ride.

The ride sharing service Uber uses a surge pricing algorithm, allowing the platform to charge some multiple of the base price of any given ride. Explain how supply and demand dynamics may play into these price calculations.

Can anything be definitively said about consumer surplus changes in the event of surge pricing? Do you think Uber rides are a normal good?

[Please use your own words and views to answer this essay question in a few sentences, one or two paragraphs. We are not looking for THE right answer - we want to see how you use microeconomics principles to interpret real life issues...]

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