Electricity use in a small town is high as people get ready to leave for work and after they arrive home at the end of the day. During the middle of the day, household use of this utility is very low. Increasing capacity seems like a bad idea because resources would sit idle during the time people are at work. The town council asks for your advice about the best way to solve the problem of quantity demanded during peak use hours. What advice would you give?

Question

Business

Miriam Walters

3 November, 12:03

Electricity use in a small town is high as people get ready to leave for work and after they arrive home at the end of the day. During the middle of the day, household use of this utility is very low. Increasing capacity seems like a bad idea because resources would sit idle during the time people are at work. The town council asks for your advice about the best way to solve the problem of quantity demanded during peak use hours. What advice would you give?

+1

Answers (1)

Know the Answer?

Xavier Greene · Answer 1

The correct answer is letter "C": Increase the price of electricity during peak times.

Explanation:

The best form to regulate the use of electricity during peak hours would imply increasing the price of the power service. This will cause people to use the utility moderately to avoid increasing their expenses. By demand law, as long as the price increases, the quantity demanded tends to fall.