We’re bringing again value principle with our sequence on Value Idea issues with Professor Bryan Cutsinger. You may view the earlier downside and Cutsinger’s answer right here and right here.
Share your proposed options within the Feedback. Professor Cutsinger will likely be current within the feedback for the subsequent couple of weeks, and we’ll put up his proposed answer shortly thereafter. Could the graphs be ever in your favor, and lengthy dwell value principle!
Query: Uber provides a membership choice that entitles members to a proportion discount within the value of Uber rides. Consider the next two statements:
1- Suppose an Uber buyer is detached between turning into an Uber member or paying the usual Uber experience value. This buyer won’t ever spend much less, and, basically, will spend extra on Uber rides if the client turns into a member. (Assume that Uber rides are a homogenous good.)
2- Introducing the membership choice can by no means scale back the variety of Uber rides this buyer takes.