Question

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Answer 1

Uber provides point to point car transport services in brisbane. Generally, the price per kilometer is a fixed amount.However, when demand is far greater than supply, prices per kilometer ''surge'' encouraging more drivers onto the road to drive for uber. The price surge is an example of peak load pricing.

Explanation

The price surge is an example of peak load pricing, because peak load pricing is a situation in which consumer has to pay higher price during the peak time as compared to non-peak time. In this case, when demand is far greater than supply, now the consumer has to pay higher price for Uber point to point car transport services. The existing numbers of drivers onto the road is not enough to fulfill the heavy demand and to manage that demand prices per kilometer ''surge'' in order to encourage more drivers onto the road to drive for uber. Therefore, The price surge is an example of peak load pricing.