Discussion
An inclining block tariff for domestic consumers is used chiefly to
Answer: A
Correct answer: keep the price low for small consumers
An inclining block tariff charges the first units cheaply and later ones dearly, so a household using little pays a low average price while a large user pays a high one. It is a social instrument, delivering a subsidy to small consumers without any means test, and it discourages consumption at the margin at the same time.
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