Have you ever tried to go to the movies, just to find that all the shows were sold out? It’s frustrating for audiences, but it’s also frustrating for theaters! A sold-out show is a sign that they may have been able to charge a higher price for admission. However, higher prices might also mean that fewer people are willing to buy tickets...what is a theater owner to do?
In this lesson, students figure out how much money theaters could make by charging different ticket prices. They find the best possible ticket price, accounting for the fact that theaters would sell fewer tickets at higher prices. Finally, students come up with strategies theaters could use to earn the dollars of audience members willing to pay different amounts.