Use of Internet service 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? Choose one: A. Increase the supply of Internet service during peak times. B. Decrease the supply of Internet service during peak times. C. Increase the price of Internet service during peak times.

Question

Business

Deborah Baldwin

18 May, 05:30

Use of Internet service 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? Choose one: A. Increase the supply of Internet service during peak times. B. Decrease the supply of Internet service during peak times. C. Increase the price of Internet service during peak times.

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Answers (1)

Know the Answer?

Hunter Friedman · Answer 1

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

Explanation:

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