Question: The table below provides the demand schedule for rides on Uber, a popular ride-sharing service that works in competition with the taxi industry. Use the

The table below provides the demand schedule for rides on Uber, a popular ride-sharing service that works in competition with the taxi industry. Use the information provided to complete the table, filling in the blanks where indicated. show your work for each column.

Rate

Quantity Demanded( Number of rides, Thousands)

Total Revenue (Thousands of Dollars)

% Change in Price

% Change in Quantity Demanded

Elasticity

$1/Mile

25

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___

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$2/Mile

20

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$3/Mile

15

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$4/Mile

10

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$5/Mile

6

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$6/Mile

3

___

___

___

___

A) Suppose Uber is currently charging $1.50/mile. To increase total revenue, should Uber raise or lower rates? Explain in a sentence.

B) Suppose Uber is currently charging $5.50/mile. To increase total revenue, should Uber raise or lower rates? Explain in a sentence.

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