Posted byPriscilla Rodriguez02/04/2021
Posted inUncategorizedEditMicroeconomics Chapter 4: Reflection
In many large cities you can now use your cell phone to call Uber or Lyft instead of hailing a taxi. Would you expect this to affect the prices of taxi medallions (that is really the supply of taxis)? Why or why not? Talk about supply and demand curves in your answer. As the demand for Uber/Lyft increases causing an increase in the market demand. Uber is more cost effective which will make the quantity increase causing a demand shift. Taxi supply is decreasing due to increase of price causing decrease in the demand curve. Their is more uber supply and the price might increase to increase of demand. the shift in supply curve will increase, while the taxi quantity will decrease causing supply curve to decrease. Taxi are not effective in cost and or in travel, uber are more available and easy access to them then taxi. Which makes the demand for uber more effective because it’s easier access and lower prices. Can you think of an example where you watched the supply of a good or service change rapidly? (For example, a new hotel or restaurant opened.) Based on the chapter what would you expect to see happen? Why? The Marijuana Industry moving into Rifle, Co. When it started, there were only one or two dispensaries in town. Then it grew to 3 or four in a three block radius. The prices were higher, but when the market became more competitive, the prices started coming in line with each other. which would be considered supply and demand.
How did AirBnB affect the supply of short term rentals in San Francisco?
“City officials across the globe have sought to minimize Airbnb’s impact on tight housing supplies and rental costs, sparking legal fights with the company, which has argued that, as an Internet platform, it is not responsible for the listings on its website.
As part of the settlement with San Francisco, where Airbnb is headquartered, the company will create a registration system requiring that anyone in the city who wants to rent room or house on Airbnb must first supply their name, address and zip code, said Airbnb global policy chief Chris Lehane. Only after registering can hosts list their homes for rent.
“Every host on the Airbnb platform will be registered, which is what the city has said it will be looking for,” Lehane said.”
https://www.reuters.com/article/us-airbnb-sanfrancisco-settlement-idUSKBN17X254
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