Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an
A) inelastic supply of movies in the evening.
B) elastic demand to see movies in the evening.
C) elastic demand to see movies in the afternoon.
D) inelastic demand to see movies in the afternoon.

Question

Quizplus · Accepted Answer

Movie theaters charge lower prices to see a movie in the afternoon because demand for movies is typically more elastic in the afternoon than in the evening. In the evening, people are more willing to pay higher prices to see a movie because it is a popular time to go out and socialize, while in the afternoon, people are more likely to have other options for how to spend their time, so they are more sensitive to price changes.

Movie Theaters Charge Lower Prices to See a Movie in the Afternoon