Question

Pls explain, “(why) the producer should be charging a peak-period fee” if necessary pls create an example and also plot the graphics

Answer 1

utility companies as a producer charge peak periods fee when the demands of such items or goods is higher in that particular periods of the year. The main purpose of peak pricing is the regulating demans so that it can be stayed within a manageable level of what can be supplied.

For example:- the ahmedabad way bridge charges a higher toll fee during on the weekend when drivers are more likely to be traveling. This is an best way to increase revenue when demand is high while also managing demand since drivers unwilling to pay the premium will avoid those times.