When different prices are charged at different times to reduce capacity restraints (e.g.charging more for electricity during the day when it is at peak usage),is known as:
A) penetration pricing.
B) price discrimination.
C) peak-load pricing.
D) price skimming.

Question

Quizplus · Accepted Answer

Peak-load pricing is the practice of charging different prices at different times to reduce capacity restraints. The goal is to encourage consumers to shift their usage to off-peak times when prices are lower, thereby reducing overall demand during peak periods. This type of pricing is commonly used for electricity, transportation, and telecommunications. Penetration pricing is a strategy of setting low prices to enter a new market or gain market share. Price discrimination is the practice of charging different prices to different groups of consumers for the same product or service. Price skimming is a strategy of setting high prices at the launch of a new product or service to capture early adopters before gradually lowering prices to reach a wider market.

When Different Prices Are Charged at Different Times to Reduce