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Sign up with Google Sign up with FacebookQ: Why do movie theaters charge more on the weekends?
This is something that is different to me. Why do they make the movie tickets more pricey on the weekends? The price is about half the price on days like Tuesday.
I would imagine it is supply and demand. There are only so many seats in the Movie theater. More people have free time on weekends, so the price of movie tickets will be higher then, meaning more demand.
There is no additional marginal cost to selling one more movie ticket, so long as you have an empty seat. So you maximize revenue, meaning P * Q(P). The theater sets the price, which means, if you know any microeconomics, that you increase the price until the elasticity is -1.
dum question, they do this every where, how is this China related?