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Consider the market for ride services. About 10 years ago Uber burst onto the scene, followed by Lyft and both competing with existing taxis. Draw
Consider the market for ride services. About 10 years ago Uber burst onto the scene, followed by Lyft and both competing with existing taxis. Draw two markets -- taxis and ride-share services (Uber, Lyft, etc.). Are they substitutes or complements? As ride-sharing grows, how is the taxi-ride market affected? Draw this effect on your graph and describe what you did. Where is the new equilibrium with respect to the original equilibrium?
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