When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting?
A) It is providing complementary services.
B) It is increasing peak-time efficiency.
C) It is using linear pricing.
D) It is using differential pricing.
E) It is sharing services.

Question

Quizplus · Accepted Answer

The theater is using differential pricing by setting lower prices for matinee shows to shift demand from peak to off-peak periods.

When a Theater Sells Matinee Movie Tickets at Low Prices