1.8 The taxi app Uber has a price hike mechanism called

“surge pricing”, and when effective the minimum fare and per-kilometer fare will be set at a multiple of the normal level. Assume that in one of the cities it operates, the drivers have agreed the maximum multiple is 1.2x, i.e. 20 percent increase in fares. Also assume that normally, the number of passengers per hour is 20, but as a superstorm hits the town, nearly 100 people request an Uber ride per hour. Consequently, Uber drivers raise the fares by 20 percent. Do you think that the new higher fares will be high enough to meet the increased demand? Use a supply and demand graph to explain your answer.