1) In many large cities you can now use your cell phone to call Uber or Lyft instead of hailing a taxi. Would you expect this to affect the prices of taxi medallions (that is really the supply of taxis)? Why or why not?
The use of cellphones for Uber and other ride share platforms would significantly decrease the demand for taxis, thus reducing incentive for taxi drivers. This would significantly decrease the supply of taxis.
2) Can you think of an example where you watched the supply of a good or service change rapidly? (For example, a new hotel or restaurant opened.) Based on the chapter what would you expect to see happen? Why?
In Highlands Ranch where I live, there are still lots of new homes and apartments being constructed and the supply of houses is rapidly increasing. Based on the chapter I would expect to see a rapid population growth in the city, this is because the demand for housing is rising in Highlands Ranch to meet the supply of new houses.
3) Give another example of a concept from this chapter. For example I used AirBnB to rent an apartment in San Francisco a few years ago. How did AirBnB affect the supply of short term room rentals in San Francisco? How about the supply of long term rentals?
AirBnB has definitely impacted the rental business all over the world. AirBnB did increase the supply of short term room rentals in San Fransisco because it gave more people the option to rent their property on AirBnB. The supply for long term rentals is effected simultaneously with short term rentals because AirBnB has both long and short term rentals.
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