Explain the concept of peak-load pricing.

Explain the concept of peak-load pricing.

Peak-load pricing is a pricing strategy where businesses charge higher prices during periods of high demand or peak hours, and lower prices during periods of low demand or off-peak hours. This strategy allows businesses to maximize their profits by capturing the willingness of customers to pay more during peak times. It also helps to balance the demand and supply by incentivizing customers to shift their consumption to off-peak hours, thereby reducing congestion and optimizing resource allocation.