Movie theaters usually set lower prices for children than for adults because
A) children can be served at lower costs.
B) they expect to make up the loss on the sale of refreshments.
C) they think the price elasticity of demand for movie tickets is quite elastic for children at the regular or adult price.
D) they want to get young people into the habit of attending movies.
C
You might also like to view...
Suppose the interest rate is 7 percent. Consider four payment options: Option A: $500 today. Option B: $550 one year from today. Option C: $575 two years from today. Option D: $600 three years from today. Which of the payments has the lowest present value today?
a. Option A b. Option B c. Option C d. Option D
If stock prices follow a random walk,
A. speculation in the stock market destabilizes prices. B. a stock’s past performance is not a good indicator of its future performance. C. rumors, news, and other “signals” have no effect on stock prices. D. the stock market does not participate in channeling resources toward firms with high stock prices.