Economics

It is normal that there are times when it is peak time and there are some other times when it is off peak. Due to this shift, there are usually some changes that take place in industries which are affected. Taking for instance the electricity industry, it happens that electricity is a very crucial commodity in our day to day life. It is used in domestic and also in industrial productions. There are times when electricity is in high demand and since it follows the normal demand and supply curve, it there are chances when this happens there will be peak-load pricing. Peak load pricing simply means that people are given electricity in different times of the day. (Kolstad, 1999)

This has an advantage in that all the people are served with electricity for some time within the day. The schedule is designed in a way that most of the people are served with electricity at the time they need it most.  However, there is also a disadvantage in that while there is a shift in the supply of electricity, a lot of resources are wasted because of the absence of power in the region for some time. This makes people to turn to other forms of energy for their survival if they can. However, there are others such as big industries which cannot soft to other forms of energies and to them, peak load pricing results to a total loss. (Kolstad, 1999)

A framework in which a deposit-refund system can work efficiently is the case where a system is designed which would collect all the used cans. To motivate people to forward their cans, there should be some money that should be given to all those people who give out their cans. Alternatively, people should be charged for the containers so that they can return the containers to get refund. In addition, all goods should be packed in containers that need to be returned. A good example is the case with some containers that are used to pack refreshments. Some of these refreshments are packed in bottles which are returned after use. If this is the case that happens in all the liquids that are packed, then, the deposit-refund system would be said to work more efficiently. (Kolstad, 1999)