Consider the Following Scenario to Answer the Following Questions: EJH

question 116

Multiple Choice

Consider the following scenario to answer the following questions: EJH Cinemas,a movie theater next to your university,attracts two types of customers-those who are associated with the university (students,faculty,and staff) and locals who live in the surrounding area.There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas,with a maximum willingness to pay of $7 per ticket.There are 20,000 local customers interested in purchasing tickets,with a maximum willingness to pay of $9 per ticket.The movie theater incurs a constant marginal cost of $4 per ticket.For simplicity,assume each customer purchases,at most,one ticket.
-If EJH Cinemas decides to practice price discrimination,charging $9 for a standard ticket available to everyone,but only $7 for a ticket if you show your university identification (students,faculty,and staff) ,what will be the amount of consumer surplus?

• A) $0
• B) $5,000
• C) $15,000
• D) $20,000
• E) $25,000

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Definitions:

Tarsier

A small, nocturnal primate found in Southeast Asia, known for its large eyes, elongated ankles, and ability to leap between trees.

Marmoset

A small, tree-dwelling primate with a distinctive appearance, native to South and Central America.

Solitary Ape

A term that can refer to apes that prefer living alone rather than in social groups, focusing on their behaviors and adaptations for solitary life. This term might also refer to the concept of the "solitary ape" in studies of human evolution or behavior, which posits unique characteristics or behaviors when compared to other primates.

Gibbon

A type of small ape known for its arboreal lifestyle and long arms, native to the forests of Southeast Asia.