A local theater charges $5.00 for every matinee (daytime) ticket, but the ticket prices are much higher during the evening. This is an example of:
A) peak-load pricing.
B) second-degree price discrimination.
C) a two-part tariff.
D) bundling.
E) none of the above

Question

Quizplus · Accepted Answer

Peak-load pricing involves charging different prices depending on when the service is used, with higher prices during times of high demand and lower prices during times of low demand. The fact that the theater charges a lower price for matinee tickets indicates that they are using peak-load pricing.

A Local Theater Charges $5