Traffic congestion can be controlled by charging fees for the use of roadways.The fees vary with the demand for roadways at different hours of the day.It is usually very high during the business hours and low at other times of the day.This form of pricing strategy is referred to as:
A)price gouging.
B)peak-load pricing.
C)marginal use pricing.
D)second-degree price discrimination.

Question

Quizplus · Accepted Answer

Peak-load pricing involves charging higher fees during peak demand hours and lower fees during off-peak hours. This strategy helps to reduce traffic congestion during rush hour by encouraging drivers to travel at other times of the day or switch to alternative modes of transportation. Price gouging refers to charging unfair and excessive prices, marginal use pricing charges different prices for different levels of consumption, and second-degree price discrimination involves charging different prices based on the quantity or volume purchased.

Traffic Congestion Can Be Controlled by Charging Fees for the Use