A movie theater that charges a lower price for matinees than for evening showings is engaging in
A) first-degree price discrimination.
B) second-degree price discrimination.
C) third-degree price discrimination.
D) The answer cannot be determined without additional information.

Question

Quizplus · Accepted Answer

This is an example of third-degree price discrimination, where different prices are charged to different groups of customers based on attributes like time of day, age, or location. Charging less for matinees targets a specific group (e.g., those who can attend movies during the day) with a lower price.

A Movie Theater That Charges a Lower Price for Matinees