Have you ever tried to sneak warm, buttery popcorn into the movie theatre with you? Chances are you would need a large bag to attempt such a feat, or risk leaving a greasy stain on the outside of your pants pocket. It would be easier to buy a bag at the theatre. You could leave the backpack at home and avoid the throng of animals trailing you to the theatre as well.
So why would anyone want to sneak popcorn in?
One, popcorn in the movie is expensive.
Two, there are no subsittues for the popcorn.
Three, the popcorn is so delicious, that you know you can't make it as well at home.
When there are little to no substitues for a product, the product is said to be inelastic, and generally, the more inelastic a product is, the more revenue it will create.
At $6 a bag, 200 people per night are willing to buy popcorn.
At $8 a bag, the same 200 people per night are also willing to buy popcorn.
If the rising of the price of popcorn deterred the popcorn lovers from buying it, would be an elastic product.
From website: http://m.theglobeandmail.com/report-on-business/article972617.ece?service=mobile
I would considerpopcorn to be inelastic product as it can always be substituted with Bag of chips or dry nachos one can buy at movies..
ReplyDeleteBut for sure there are not many substituties available for the popcorn.