A Movie Theater Faces the Following Hourly Inverse Demand Curves

question 121

Multiple Choice

A movie theater faces the following hourly inverse demand curves:
Seniors: P_s = 12 - 0.5Q
Adults: P_a = 19 - Q
The marginal cost is constant at $1. If the movie theater uses segmenting, the ticket price charged to adults is $____.

• A) 10
• B) 9
• C) 8.50
• D) 6.50

---

Definitions:

Whisky Consumption

The act of drinking whisky as a means of enjoyment or recreation.

Gallons

A unit of volume used primarily in the United States to measure liquids and gases.

Utility Function

A mathematical representation of how consumer preferences over goods or services translate into utility or satisfaction levels.

Whisky Consumption

The act of drinking whisky, which can be measured by volume consumed over a given period.