Movie theaters often offer reduced rates for children under 10. This suggests that demand for adult admission is ________ than demand for children's admission.

Question

Quizplus · Accepted Answer

Movie theaters offer reduced rates for children under 10 because the demand for their admission is more elastic than for adults. This means that parents are more sensitive to changes in price than adults and are more likely to bring their children to the movies if the price is lower. Thus, theaters can increase the number of customers by offering lower prices for children's admission.

Movie Theaters Often Offer Reduced Rates for Children Under 10