. If, over time, consumers are encouraged to switch their consumption to off-peak periods, what will
happen 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 opposed
to a uniform price at all times?
How would profit-maximising output and price be determined under third-degree price discrimination if
there were three separate markets?
Draw a diagram to illustrate your answer.
. Which type of price discrimination is the cinema pursuing: first, second or third degree? Would it be possible
for the cinema to pursue either of the other two types?