In case of rideshare market such as Uber, surging the price dampens demand. It was observed that if prices increased for a ride from $5.00 to $ 6.00, a 1.2x surge, there was a precise 27% drop in demand. Based on the above information and the figure below, answer the following questions:

1. What is the estimated price elasticity of demand (PED) for Uber? Interpret your answer.
2. Is this estimated demand elastic or inelastic? What could be two reasons for it? Explain your answer.
3. What would be the impact of such surge pricing on Uber's revenue? Would it be a good decision to charge surge prices frequently if it wishes to maximize profits?