Economics (MindTap Course List)
Solutions
Economics (MindTap Course List)
Many movie theaters charge a lower admission price for the first show on weekday afternoons than they do for a weeknight or weekend show. Explain why.
Explain the reason for movie theaters charging a lower admission price for first show on a weekday afternoon than for weeknight show.
Charging lower admission price for first show on weekday afternoon than for weeknight show is due to the availability of surplus seats. The potential viewers who are available at an early show are non-wage earners. Thus, the theater owner identified that for an early show seats are surplus beca...
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