A movie theater is a price-discriminating monopolist and charges a higher ticket price for late-evening showings. From this we know that:
A) late-evening moviegoers have perfectly inelastic demand schedules.
B) late-evening moviegoers have less elastic demands than daytime or early-evening moviegoers.
C) late-evening moviegoers have more elastic demands than daytime or early-evening moviegoers.
D) daytime and early-evening moviegoers have perfectly elastic demands.

Question

Quizplus · Accepted Answer

Price discrimination is based on differences in price elasticity of demand. Late-evening moviegoers have less elastic demand, allowing the theater to charge higher prices without losing many customers.

A Movie Theater Is a Price-Discriminating Monopolist and Charges a Higher