Which of the following gives consumers an incentive to reduce the consumption of a service when the cost of providing the service is the highest?
A) average cost pricing
B) constant pricing
C) peak load pricing
D) regulated pricing

Question

Quizplus · Accepted Answer

Peak load pricing gives consumers an incentive to reduce consumption during times when the cost of providing the service is the highest, such as during peak hours. This is because the price of the service is higher during peak hours, which encourages consumers to use the service during off-peak hours when the cost is lower. Average cost pricing, constant pricing, and regulated pricing do not necessarily provide an incentive for consumers to reduce consumption during times when the cost of providing the service is highest.

Which of the Following Gives Consumers an Incentive to Reduce