UBER and Substitutes (Links to an external site.)Links to an external site.Substitutes for UBER (Links to an external site.)Links to an external site.I believe Uber is a substitute for Taxis. The main reason I believe this isbecause the drop-in demand for Taxis since Uber has been in business. This isbecause of Ubers convince as well as its low prices. I imagine that if Uber were todouble their ra
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UBER and Substitutes (Links to an external site.)Links to an external site.
Substitutes for UBER (Links to an external site.)Links to an external site.
I believe Uber is a substitute for Taxis. The main reason I believe this is
because the drop-in demand for Taxis since Uber has been in business. This is
because of Ubers convince as well as its low prices. I imagine that if Uber were to
double their rates people would use a substitute of theirs, even Taxis. Since cross
elasticity of demand (a change in demand for a product due to a price change of
another product) only occurs within products that’s substitute each other, I believe
it is safe to say Taxis and Uber are substitute products.
PART II: IS UBER A NORMAL OR INFERIOR GOOD?
From the question above provide 2 Reasons why you are
arguing whether Uber is a normal or inferior – briefly
rationalize why using concepts related to income elasticity
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