Recall the Application about the reason for the high price of movie popcorn to answer the following question(s).
-Recall the Application.What happens with the high demanders and low demanders if the movie theater were to lower the price of the popcorn from $4 to $0.10 and increase the admission from $10 to $12?
A) The low demanders will still see the movie and buy popcorn.
B) The high demanders will see the movie and buy popcorn at the same rate as the low demanders.
C) The high demanders will see the movie and buy popcorn and the low demanders will not do either.
D) The high demanders will not see the movie and buy popcorn.

Question

Quizplus · Accepted Answer

This is because the high demanders are willing to pay more for the popcorn and therefore, if the price of popcorn is reduced significantly, they will still buy popcorn and see the movie. On the other hand, the low demanders may not be motivated to see the movie or buy popcorn even if the prices are reduced. By increasing the admission fee, the low demanders are less likely to see the movie, while the high demanders, who are willing to pay more, will still attend the movie. Therefore, the high demanders will see the movie and buy popcorn, while the low demanders will not do either.

Recall the Application About the Reason for the High Price