The fact that movie theaters charge a lower price to see a movie during the day as compared to evening show even though there is no change in cost is known as: 1.time discrimination. 2.Dinelastic supply of movies 3.price discrimination. 4.elastic demand for movies during the day

The fact that movie theaters charge a lower price to see a movie during the day as compared to evening show even though there is no change in cost is known as: 1.time discrimination. 2.Dinelastic supply of movies 3.price discrimination. 4.elastic demand for movies during the day

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter14: Indirect Price Discrimination

Section: Chapter Questions

Problem 14.6IP

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Concept explainers

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

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The fact that movie theaters charge a lower price to see a movie during the day as compared to
evening show even though there is no change in cost is known as:

1.time discrimination.
2.Dinelastic supply of movies
3.price discrimination.
4.elastic demand for movies during the day

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