Charging Different Prices During Different Times or Days in Order

question 11

Multiple Choice

Charging different prices during different times or days in order to stimulate demand during slow periods is called _____.

• A) upscale pricing
• B) off-peak pricing
• C) every-day-low pricing
• D) odd pricing

---

Definitions:

Optimal Pigouvian Tax

A type of tax designed to correct the negative externalities of a market activity, set at a level that equates the marginal social cost of the externality with the marginal private cost.

Socially Optimal

A condition where resources are allocated in a way that benefits society as a whole, maximizing overall welfare.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, affecting air, water, and land.

Beneficiaries

Individuals or groups that receive benefits or advantages from actions, policies, or trusts, often in the context of insurance, inheritance, or social programs.