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Prices send signals that allocate resources. Ride-share businesses such as Uber and Lyft send signals when they engage in surge pricing, that is, when
Prices send signals that allocate resources. Ride-share businesses such as Uber and Lyft send signals when they engage in "surge pricing, " that is, when they raise fares during times of peak demand. Conventional taxicabs, on the other hand, are "one price" operations and do not surge price. Are consumers better off, or worse off, or unaffected by Uber and Lyft's surge pricing? Explain carefully and in detail please.
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