Supply and Demand Shifters management homework help

Read the following post of a supply and demand change and provide further analysis. Explain which curve shifted and which shifter was affected. Do you also conclude that equilibrium decreases in the end or is it the opposite? Why or why not? Explain your analysis thoroughly. A total of 300 or more-word count is required. Requires at least 2 scholarly sources. Let me know if you have any questions or concerns.

Uber is the taxi service that is finding the way, creating possibilities for riders, drivers, and cities. Travis Kalanick is the founded of an American multinational online transportation company that was founded in 2009. Today Uber is one of the most alternative car services in demand across the country. Uber started as a luxury brand car services, because of their original plan was traditional black car services. They saw the need to expand to a lower price service called UberX brand that would reach everyday people. A change in demand happened when Uber introduced UberX . The demand was high due to their customers were now people that need to go the grocery store, to work, or home after a night on the town. Uber experience the shift of demand curve when Uber increase the pricing for their service. The price increase occurred around peak times like Friday, Saturday and Holidays. Back in early 2012, Uber’s Boston team noticed a problem. On Friday and Saturday nights, around 1am, the company was experiencing a spike in “unfulfilled requests.” The root cause was that drivers were clocking off the system to go home, just before the weekend partygoers were ready to venture home themselves (Gilley, 2014). By offering the drivers more income during the peak times Uber saw the demand supply for their service increase.

When the prices expand it helps the market influence equilibrium. The price and quantities would change because of the demand of the service for Uber. The function linking price and quantity is called a ‘supply function’ (Anderson, 2013). If Uber is not able to fulfill customers needs most of their customers will be without transportation. Increasing their supply they will be able to give rides to all their customers. This would cause equilibrium to decrease which will shift the availability of drivers.

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!":

Get started