What is the economic reason that popcorn and soda at the movies are so expensive? Be specific in your answer and use economic reasoning.
2006-11-09 13:05:45 · 2 answers · asked by Josh D 1 in Social Science ➔ Economics
Limit supply, increase demand.
They don't let you bring in your own popcorn, and it is a bit difficult to sneak in bulky popcorn and a cold soda. Even if you could, there is a convincing factor over bringing in stuff. So they have a captive market for 2 hours.
Demand. All they have to do is have that popcorn by the door. It's tough to pass by it without smelling it and wanting some. By the time you are 8 you are conditioned to want popcorn with your movie. Oh, and all that salty popcorn needs a soda to wash it down.
2006-11-09 15:34:29 · answer #1 · answered by JuanB 7 · 0⤊ 0⤋
It's a kind of bate and switch trick. To compete against home videos and get people into the theatres, they keep ticket prices low. Once you're there, you can't really run over to 7 Eleven or carry your own in so they rape you. Popcorn and soda are part of their product and they have a captive audience so they charge what they think the market will bear.
HP does this with their printers. They sell the printers cheap but you can't use the printer without a ribbon that they substantially overcharge for.
2006-11-10 14:56:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋