What is the most likely reason that theater operators charge students and senior citizens less than everyone else for tickets, but charge everyone the same price for popcorn?
A. They have compassion for lower-income people
B. They believe movies are more of a necessity than popcorn
C. They can more easily detect age than hunger, and the elasticity for movies varies more among the groups than does the elasticity for popcorn
D. They are required by antitrust law to give seniors lower prices
Answer: C. They can more easily detect age than hunger, and the elasticity for movies varies more among the groups than does the elasticity for popcorn