Chapter 7 if over time consumers are encouraged to

This preview shows page 23 - 25 out of 53 pages.

Chapter 7. If, over time, consumers are encouraged to switch their consumption to off-peak periods, what willhappen to peak and off-peak prices?
To what extent is peak-load pricing in the interests of consumers?
Is total consumption likely to be higher or lower with a system of peak and off-peak prices as opposedto a uniform price at all times?
How would profit-maximising output and price be determined under third-degree price discrimination ifthere were three separate markets? Draw a diagram to illustrate your answer.
for the cinema to pursue either of the other two types?
24Chapter 7Answer

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture