Metropolitan Opera tickets are most expensive on Saturday night. Nevertheless, a very limited number of student rush tickets are often available, and a lucky student can wind up paying $20 for a $250 seat. The student rush tickets are available on a first-come, first-serve basis.

Part 1(0.3point)

Why does the opera company offer these low-priced tickets?

Choose one or more:

A.It is able to sell seats that would otherwise go unsold.

B.This creates a frenzy for last-minute student tickets.

C.It knows thatallstudents have an elastic demand for opera tickets.

D.It wants students to have access to shows at a low price.

Part 2(0.3point)

How does the opera company benefit from this practice?

Choose one or more:

A.The Met is able to charge different prices to different groups, raising its profits.

B.The Met is able to generate revenue from unsold seats without having to drop the price for nonstudents.

C.The Met can increase attendance among a group of people with more elastic demand by charging them a lower price.

D.The Met can effectively price-discriminate between students and nonstudents.

Part 3(0.3point)

Why are students, and not other groups of customers, offered the discounted tickets?

Choose one or more:

A.In general, students have a more elastic demand.

B.In general, students love opera.

C.In general, students are more flexible and willing to buy tickets at the last minute.

D.In general, students have a more inelastic demand.