Question

Magicia Multiplex Inc. charges its customers $2 for any movie before 12 p.m. on weekdays, and charges $6 for the same shows on weekends. For shows after 12 p.m., the price on weekdays is $4 and on weekends it is $7. These prices are based on the variations in demand for movie tickets between weekdays and weekends and before and after 12 p.m. What pricing strategy does this scenario best reflect?a) odd pricingb) even pricingc) off-peak pricingd) subscription-based pricinge) premium pricing

Answer 1

Answer:

The correct answer is C: off-peak pricing

Explanation:

Off-peak pricing is a way of stimulating demand by charging less than "normal" in periods of low demand. In this exercise, it changes the price differentiating by weekdays and time. It expects to attract costumers to days and hours of low demand. The opposite is Peak pricing which is a way of congestion pricing where customers pay an additional fee during periods of high demand.