Answer to Question #125485 in Microeconomics for zanele

Question

does load shedding affect demand or supply side?
which markets are affected by load shedding

Answer 1

Supply

Load shedding is a situation where there is no sufficient electricity available. Meaning that the electricity available cannot meet the demand of all customers. This creates a need to deliberately shutdown electricity energy supply to some areas. It is the last resort to ensure there is a balance in supply and demand for electricity.

Hence prevents the entire system from failure if the demand strains the entire capacity of the system.

Load shedding mostly affects Markets which are developing or emerging.

It also cost small businesses and corporations alot of money