What is most likely the reason? What is the most likely reason that a movie theaterwould charge the same price for a popular movie withhigh demand and an unpopular movie with low demand?The theater's consumers expect the prices toremain consistent with its custom.Raising or lowering prices would likely cause ashortage or a surplus.The equilibrium price for the two movies is thesame.Price ceilings and price floors prevent the theaterfrom changing prices too greatly.

The law of demand and supply explains how the interaction of demand and supply determines the price and equilibrium quantity of a commodity.According to the theory of demand and supply, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa. But we have noticed that a movie theater would charge same price for a popular movie and for an unpopular movie irrespective of its demand. Theaters usually charge uniform pricing for movies because of the price control measures adopted by the authorities. Price ceiling and price floors restrict the theater from keeping ticket prices too high or too low based on the movie demand. So we can say that last option is correct. Consumers are mostly willing to pay a higher price for movies that they prefer more and hence first option is wrong. Since different movies are not homogeneous goods, raising or lowering prices do not directly result in shortages and surplus. So this is also not a valid reason. Next option is also wrong because equilibrium price for two movies are not same since they are not identical and there is difference in demand. Therefore the most likely reason is, Price ceiling and price floors prevent the theater from changing prices too greatly.