Help with this assignment please

timer Asked: May 1st, 2017

Question description

Please read this article from the New York Times and answer the following questions.

1. Why did the variable pricing model for Coke vending machines in early 2000's fail to work? ( Note: Variable price model refers to prices being linked to demand and not to other variables like quality, etc.)

2. Why does the surge pricing model work in case of Uber? Isn't it the same thing?

3. Fill in the blanks:

A. When the firm faces an inelastic demand curve (Like on a hot day for Coca Cola and at peak rush hour for Uber), and the firm increase its prices, their revenues will _____________increase/ decrease

B. When the firm faces an Elastic demand curve (Like on a cold day for Coca Cola and at non-peak rush hour for Uber),and the firm increases its prices, their revenues will _____________increase/ decrease\

Tutor Answer

(Top Tutor) Studypool Tutor
School: Carnegie Mellon University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors