A movie theater charges different prices for tickets based on the time of day, offering lower prices for matinee shows and higher prices for evening shows. How would you classify this pricing strategy?

The movie theater's pricing strategy can be classified as price discrimination because it charges different prices for the same product, which is the movie ticket, based on the time of day. This means that they recognize that different groups of customers are willing to pay different amounts; for example, families might prefer cheaper matinee shows while couples might be willing to pay more for evening shows. By offering lower prices during less popular times, the theater attracts more customers, filling seats that might otherwise be empty. This approach helps the theater maximize its profits while providing value to customers who are looking for a more affordable option. For instance, if a matinee ticket costs $8 while an evening ticket costs $12, the theater is effectively using price discrimination to cater to different audiences and times.