Children Are Charged Less Than Adults for Admission to Professional

question 287

Multiple Choice

Children are charged less than adults for admission to professional baseball games but are charged the same prices as adults at the concession stands. This pricing system occurs because

• A)children have an elastic demand for game tickets but an inelastic demand for concession items.
• B)children have an inelastic demand for game tickets but an elastic demand for concession items.
• C)the seller can prevent children from buying game tickets for adults but cannot prevent children from buying concession items for adults.
• D)children can personally "consume" only a single game ticket but can personally consume more than one concession item.

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Definitions:

Government Subsidy

A government subsidy is financial assistance provided by the government to individuals, organizations, or industries to encourage or protect certain activities or products.

Market Price

The existing market rate for acquiring or selling a service or asset in the open market.

Subsidy

Financial assistance provided by the government or a public body to support businesses, reduce prices, or encourage a particular economic activity.