Is Uber elastic or inelastic?
Is Uber elastic or inelastic? Uber's supply and demand curves are highly elastic; drivers on the supply side are people with alternative funding sources and preferences, meaning they work when they want to (and even sometimes for the competition).
What factors affect Uber prices?
How are prices determined? Many data points go into calculating an upfront price, including the estimated trip time and distance from origin to destination, as well as demand patterns for that route at that time. It also includes any applicable tolls, taxes, surcharges, and fees (with the exception of wait time fees).
Is demand for Uber rides elastic or inelastic?
Uber's supply and demand curves are highly elastic; drivers on the supply side are people with alternative funding sources and preferences, meaning they work when they want to (and even sometimes for the competition).
What is the demand curve for Uber?
Consumers' demand curve for Uber rides is, in economists' speak, quite inelastic--that is, not especially responsive to price. Doubling fares reduced demand by around 40%. That's why surge factors can be so large—reportedly up to 10 times on New Year's Eve. It takes a big price changes to prevent shortages.