A high level of understanding is demonstrated through the ability to teach others. In this assignment you are to assume that you are writing for a high school student that needs you to teach him or her how to analyze a market using the demand/supply model. Be detailed, specific and clear in your double-spaced, word-processed, textual explanations as you consider the market for “Uber Technologies.”

Do all the required readings for Module 1 and based on the textbook demand/supply model of Chapter 3, answer the following in question and answer format. There is no need to repeat the question as part of your answer – a number followed by an answer will suffice. (Please note that if you believe there is a demand change in #1 then #3 must be a supply change. If you believe there is a supply change in #1 then #3 must be a demand change. It is only in #5 where there is a change in both demand and supply together.)

1. 1 If individuals, a resource, who drive for Uber were to go on strike for better wages, would this, ceteris paribus, be reflected as a change in demand or a change in supply in the market for Uber Technologies – a normal good? Explain. Be sure to clearly identify a textbook variable or determinant that is causing this change. Would this change be an increase or decrease? Explain. Would this change result in a surplus or in a shortage in the market for Uber Technologies? Explain. Given this surplus or shortage, how will a new equilibrium be established? What do you predict will happen to the equilibrium price and the equilibrium quantity exchanged in the market for Uber Technologies? Explain.

2. 2 Illustrate your change in #1 on a graph of the market for "Uber Technologies." Label your graph fully using the "sample graph for the Milk Market” (see that PDF) as an example. Be sure to clearly indicate the surplus or shortage distance and what happens to equilibrium price and equilibrium quantity exchanged on your graph using arrows. Provide a legend as well.

3. 3 If Lyft, a substitute for Uber, were to increase their rates for rides would this, ceteris paribus, be reflected as a change in demand or a change in supply in the market for Uber Technologies? Explain. Be sure to clearly identify a textbook variable or determinant that is causing this change. Would this change be an increase or decrease? Explain. Would this change result in a surplus or in a shortage in the market for Uber Technologies? Explain. Given this surplus or shortage, how will a new equilibrium be established? What do you predict will happen to the equilibrium price and the equilibrium quantity exchanged in the market for Uber Technologies? Explain.

4. 4 Illustrate your change in #3 on a graph (yes a second one) of the market for "Uber Technologies." Label your graph fully using the "sample graph for the Milk Market " (see that PDF) as an example. Be sure to clearly indicate the surplus or shortage distance and what happens to equilibrium price and equilibrium quantity exchanged on your graph using arrows. Provide a legend as well.

5. 5 If the change in #1 and the change in #3 happened in concert (at exactly the same time), what do you predict will happen to the equilibrium price and equilibrium quantity exchanged of Uber Technologies? Explain your thinking in words (text) and illustrate on a fully labeled graph (yes a third one!). Provide a legend for your graph as well.