Peak-load pricing occurs when a higher price is charged as
A) demand approaches the physical limit of the capacity to produce a product or provide a service.
B) supply approaches the physical limit of the capacity to produce a product or provide a service.
C) supply of a product or service exceeds the demand for the product or service.
D) demand is less than the supply of the product or service.

Question

Quizplus · Accepted Answer

Peak-load pricing is used to manage demand by charging higher prices during periods when demand is near the capacity limit, encouraging consumers to use the product or service during off-peak times.

Peak-Load Pricing Occurs When a Higher Price Is Charged as