How Pricing Changes Affect Ride Length for Electric Scooters in Adriana's Hometown

In Adriana’s hometown, there is only one electric scooter company currently charging $0.20 per minute with no unlocking fee. The company is considering revising its pricing plan to charge $1 to unlock a scooter and then $0.10 per minute for the ride. For frequent users like Adriana, who never take a ride lasting less than 10 minutes, this shift in pricing could significantly affect the average length of her rides.

By analyzing the two scenarios, we understand the potential impact on her ride patterns. Under the current plan, if Adriana rides for 10 minutes, her cost is $2.00. With the proposed plan, the same 10-minute ride would cost $1.00 (unlock fee) plus $1.00 (10 minutes x $0.10), totaling $2.00.

However, as ride length increases, the new pricing plan becomes more economical. For example, a 20-minute ride would currently cost $4.00, but under the new plan, it would cost $1.00 plus $2.00, totaling $3.00. This $1.00 saving becomes more pronounced for longer rides.

Given this new cost structure, we might expect Adriana to adjust her riding behavior. Since the cost per minute drops significantly once she rides for longer times, there’s a financial incentive for her to extend the length of her trips. Essentially, the new pricing reduces the incremental cost for additional minutes, making longer rides more attractive.

In conclusion, if Adriana’s scooter company implements the new pricing plan, it is likely that the average length of her rides will increase as it becomes more cost-effective for her to opt for longer rides.