Question

Which of the following is an example of peakminusload ​pricing? A. charging less for vacations to Hawaii during December and January B. setting price equal to marginal cost when there is a capacity constraint C. selling excess capacity at lower prices D. charging more for electricity on hot days

Answer 1

Answer:

D. charging more for electricity on hot days

Explanation:

Peak load pricing is charging more for a good or service when the demand for the good is higher.

During the hot weather, people would want to use fans and air conditioners, thus, the demand for electricity would be higher as people would need electricity to power these items. So increasing the price in the hurt weather is an example of peak load pricing.

I hope my answer helps you

Answer 2

Answer:

D. charging more for electricity on hot days.

Explanation:

This is a strategy that helps service providers in billing their customers when their in traffic on the usage of a particular service. This is charging higher of a certain service when their are a lot of users trying to be benefit or trying to use it at the same time. This can easily be seen in the case of utility usage amongst countries where this forms of billings are performed. That is why in the scenario above, the charging more for electricity on a hot day falls in place as the perfect option of peakminus loading price.