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In a small city, Uver, a new ride service, has become very popular with the younger generation. The inverse demand for Uber rides is

 

In a small city, Uver, a new ride service, has become very popular with the younger generation. The inverse demand for Uber rides is given by p=100.00-QD12, where Q is the number of rides demanded and p is the market price per ride. The inverse supply of rides is given by p=80.00 QS4. The local government in this small city is concerned that young people will walk less, which will hurt their health. The government is, therefore, considering charging Uver riders a tax of $8.00 per ride. That is, the government would charge customers directly every time they take an Uber ride.

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