When a Ride-Sharing Service Implements "Surge" Pricing, Raising All Fares

Multiple Choice

When a ride-sharing service implements "surge" pricing, raising all fares by 30%, drivers choose to work longer hours and this results in an increase of 40% more rides available. The price elasticity of supply for ride-sharing is _____, and the supply is _____.

A) 0.75; elastic
B) 0.75; inelastic
C) 1.33; elastic
D) 1.33; inelastic