What is the most likely reason that a movie theater would charge the same price for a popular movie with high demand and an unpopular movie with low demand? The theater's consumers expect the prices to remain consistent with its custom. Raising or lowering prices would likely cause a shortage or a surplus. The equilibrium price for the two movies is the same. Price ceilings and price floors prevent the theater from changing prices too greatly.
What is the most likely reason that a movie theater would charge the same price for a popular movie with high demand and an unpopular movie with low demand? The theater's consumers expect the prices to remain consistent with its custom. Raising or lowering prices would likely cause a shortage or a surplus. The equilibrium price for the two movies is the same. Price ceilings and price floors prevent the theater from changing prices too greatly.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What is most likely the reason?

Transcribed Image Text:What is the most likely reason that a movie theater
would charge the same price for a popular movie with
high demand and an unpopular movie with low demand?
The theater's consumers expect the prices to
remain consistent with its custom.
Raising or lowering prices would likely cause a
shortage or a surplus.
The equilibrium price for the two movies is the
same.
Price ceilings and price floors prevent the theater
from changing prices too greatly.
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