Shifting demand from peak to off-peak periods is beneficial if the discount given during the off-peak period is more than offset by the decrease in cost because of a smaller peak and the increase in revenue during the off-peak period.

Question

Quizplus · Accepted Answer

Shifting demand from peak to off-peak periods can reduce the strain on resources and decrease costs associated with operating at full capacity during peak periods. If the discount given during the off-peak period is more than offset by these cost savings and the increase in revenue during the off-peak period, it can be beneficial for the business. Therefore, the statement is true.

Shifting Demand from Peak to Off-Peak Periods Is Beneficial If