Question

1. List three specific things that would cause the supply for ride-share services (i.e., Uber or Lyft) to shift. Use three different (out of the five listed in class) categories of demand-shifters in your answer.

a. Changes in Consumer Expectations

b. Changes in Price Expectations

c. Producer price expectations

d. Prices of related goods using common inputs

e. Technological innovation

Answer 1

The factors affecting the supply of the ride-share services would be

1)Price of inputs: if the price of car or gasoline rises,the cab services would have a higher costs and hence reduced profits. This would affect the supply.

2) Goverment policies: if government has strict policies which includes a lot of paperwork and higher fines,there would be less supply of these cab services.

3) More firms: if there are more firms coming up in the market, there would be more supply.