who does supply and Demond set prices for experiences: such as movies, and concerts, and why are movie tickets the same price while concerts etc are different prices?
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well basically in a concert venue, there are a certain number of seats. if you sell the tickets cheaply, you can easily fill all the seats – but you might have been able to fill them all anyway, at a higher price. if you make them super expensive then hardly anyone will buy them. so you’re looking for that sweet spot in the middle where enough people are willing to pay for tickets that the price times the number sold will be maximized. any time there is a limited number of something, either because it is a number of seats like that, or a product that is slow to produce, that’s the goal – there’s no point in trying to sell more than you have or can make.
i don’t know why movie tickets wouldn’t operate on this rule – charge less for a movie that is proving unpopular in order to entice people to come see it, charge more for something really popular. i can’t really think of a good reason not to, but idk.
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