The Athenian Theatre Sells Tickets for the Same Play at Different

question 151

Multiple Choice

The Athenian Theatre sells tickets for the same play at different prices: a lower price to those who opt for the seats at the back of the theatre and a higher price for those who purchase seats in the front, around the stage.Which of the following statements is true?

• A)This is an example of product differentiation but not price discrimination.
• B)The theatre practices first-degree price discrimination by setting prices based on willingness to pay.
• C)Since the cost of producing the play does not change with the seating configuration, this is evidence of price discrimination based on market segmentation.
• D)Charging two different prices is an effective way to avoid an excess demand for play tickets; the higher price lowers quantity demanded to some extent.

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Definitions:

Vasodilatation

The widening of blood vessels, which decreases blood pressure and increases blood flow to certain areas of the body.

Piloerection

The involuntary erection or standing up of hairs on the skin due to cold, fear, or emotional stimuli, commonly known as goosebumps.

Perspiration

Perspiration, also known as sweating, is the release of a salty fluid from the body's sweat glands as part of the process of regulating body temperature.

Cold Application

A method used to reduce swelling and pain by applying ice or cold packs to the affected area.