If you buy your tickets early for a live theater production in Rome, you'll pay about 30 percent less, than if you buy them on the day of the show. The lower price helps the early sale of tickets and guarantees the audience will be large enough to justify the cost and effort put into the production. What strategy does the theater company use to shift demand for theater tickets?

Price differentiation

Explanation:

The startegy used by the theater company to shift demand for theater tickets is differentiating on the price. Price differentiation is a pricing strategy whereby difeent sets of customers are charged different prices for the same good or services.

The theater company gives 30% discount for people who buy the tickets early compared to people who buy the ticket on the day of the performance. This so differentiation on price.

Price discrimination .

Explanation:

Price discrimination also known as differential pricing is a pricing strategy that involves a service provider or organization selling the same products at different prices to different consumers.

In this scenario, customers who bought tickets early for a live theater production in Rome, will pay about 30 percent less to justify the cost and effort put into the production, than if they purchase them on the day of the show.

the answer is: guns or butter

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-lavira : )

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