Assume that the price elasticity of demand for movie theatres is -.85 during all evening shows but for all afternoon shows the price elasticity of demand is -2.28 . For the theatre to maximize total revenue, it should
a. Charge the same price for both shows, holding other things constant.
b. Charge a higher price for the afternoon shows and lower price for the evening shows, holding other things constant
c. Charge a lower price for the afternoon shows and higher price for the evening shows, holding other things constant
d. Need more information
c
Economics
You might also like to view...
Imposing trade barriers does all of the following except
A) lowers incomes. B) invites retaliation from foreign governments. C) lowers domestic prices. D) reduces economic efficiency.
Economics
Discrimination based upon the quantity consumed is referred to as ________ price discrimination
A) first-degree B) second-degree C) third-degree D) group
Economics