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Question
Evening showtimes are more popular with moviegoers. Movie theaters discount afternoon ticket prices in order to sell more tickets during the daytime hours. Unlike the customers who go to the movies in the evenings, the afternoon customers tend to be
a. retirees who have already paid for many movies over their lifetimes.
b. stay-at-home parents who have relatively inelastic demand compared to the rest of the moviegoing population.
c. movie theater employees who could sneak in and see the movie for free; the low price deters such deceptive behavior.
d. retirees, people on vacation, and those who do not work during the day and who tend to have more price-elastic demands.
e. people who work or attend school and must be presented with a low price to offset their high opportunity cost of calling in sick for work or school.
Answer
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