Consider a Museum That Is Trying to Decide What Price

question 17

Multiple Choice

Consider a museum that is trying to decide what price to charge for tickets. It knows that the maximum amount students and the elderly would be willing to pay for a ticket is $10. Suppose there are 5,000 students and elderly individuals who would buy a ticket at this price. There are also 30,000 adults who would be willing to pay $25 for a ticket. If the museum cannot price discriminate, it will charge a price of _______ and earn _______ in revenue. If the museum is able to perfectly price discriminate, it will increase its revenue by _______.

• A)$20; $600,000; $200,000
• B)$10; $875,000; $125,000
• C)$25; $750,000; $50,000
• D)$25; $750,000; $125,000

---

Definitions:

Attitudes

An individual's learned predispositions to respond in a consistently favorable or unfavorable manner with respect to a given object.

Behavior

The observable actions or responses of individuals or systems.

Variables

Elements, features, or factors that are likely to vary or change within the context of a scientific experiment or study.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas.