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 | ___ | ___ | ___ | ___ |
| $2/Mile | 20 | ___ | ___ | ___ | ___ |
| $3/Mile | 15 | ___ | ___ | ___ | ___ |
| $4/Mile | 10 | ___ | ___ | ___ | ___ |
| $5/Mile | 6 | ___ | ___ | ___ | ___ |
| $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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