1. Third-degree price discrimination.

Such type of discrimination happens while charging a different price to different consumer groups. In this form, the seller from each group consumers gains profit maximization. Third-degree price discrimination provides a way to reduce consumer surplus by catering to the price elasticity of demand for specific consumer subsets. For the cinema business, the children are considered to have a greater price elasticity of demand, the fare is low and they pay less. Meanwhile, the adult group has a bigger ability to pay a higher price, and from that, the cinema can realize the maximization profit. The differential prices could not cause customer aversion and dissatisfaction, and it must be legal. The adult has a higher income, and are enough to pay higher fare reasonably. Children have no income, charging them for a low price could protect the benefit of most people.
Considering the given situation, a child's movie is released. Children would be more eager to watch it and adults would be less. So, here the product is more favoured to children than the adult. Eagerness to watch would work in the opposite direction to their income-earning ability while determining their price elasticity of demand and thus the price.

2. Second-degree price discrimination.

Such type of discrimination happens while charging a different price for different quantities, such as quantity discounts for bulk purchases. Customers who buy in bulk receive special offers not granted to those who buy a single product. This method is used to make buying higher quantity more attractive, thus increasing the overall revenue.