Paper 1 real world example: Price elasticity of demand and revenue
You may well have experienced a pricing method called surge or dynamic pricing if you are taking an Uber taxi. After a major concert, sporting event or just the city centre ‘rush-hour’ time in the evening Uber will increase its taxi fares as demand rises and becomes more price inelastic. Now surge pricing has started in theme parks with the entertainment company, Merlin, introducing surge pricing at its attractions...