Asked by Chelsie Bishop on Jul 17, 2024
Verified
A movie theater charges ticket prices of $4.50 during weekday afternoon matinee hours and $8.50 during evening and weekend hours. Economists explain the ticket price difference by the fact that the demand for movie tickets during the weekday afternoon matinee hours is ________ but during the evening and weekend hours it is ________.
A) more elastic; more inelastic
B) perfectly elastic; perfectly inelastic
C) more inelastic; more elastic
D) unit elastic; relatively inelastic
Demand Elasticity
The degree to which the quantity demanded of a good or service changes in response to a change in its price.
- Understand the importance of adapting pricing strategies based on demand elasticity.
Verified Answer
TM
Thaaif MuhammadJul 18, 2024
Final Answer :
A
Explanation :
The demand for movie tickets during weekday afternoon matinee hours is more elastic because consumers are more sensitive to price changes when they have more flexibility or alternative entertainment options. During evening and weekend hours, demand is more inelastic because consumers are less sensitive to price changes, likely due to fewer available alternatives and higher willingness to pay for leisure activities during these times.
Learning Objectives
- Understand the importance of adapting pricing strategies based on demand elasticity.