Economists favor the use of peak-load pricing since it can
A)improve the equity of the distribution of income.
B)enhance the efficiency in the use of scarce resources.
C)improve the profit levels of corporations.
D)result in lower levels of pollution.

Question

Quizplus · Accepted Answer

Peak-load pricing can enhance efficient use of scarce resources as it encourages consumers to shift their consumption to other times or choose alternatives, reducing the strain on the resources during peak demand periods. It does not necessarily improve equity or profit levels, and its impact on pollution levels may vary depending on the industry and context.

Economists Favor the Use of Peak-Load Pricing Since It Can