The Athenian Theatre Sells Play Tickets for the Same Play

question 156

Multiple Choice

The Athenian Theatre sells play 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:

Authoritative Parenting

A parenting style characterized by high responsiveness and high demands, where parents set clear standards, are assertive but not intrusive or restrictive.

Gender Awareness

The recognition and understanding of the differences between genders and the societal roles attributed to each gender, often developed in early childhood.

Power-assertive Methods

Power-assertive methods refer to disciplinary techniques that involve the use of authority or physical force to enforce child compliance, such as corporal punishment or strict control.

Egalitarian

A principle that emphasizes equality and equal rights across genders, races, and economic statuses.