Supply and Demand
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Supply and Demand
The good in which I have picked for this assignment is vacation to a theme park. I believe this good has many factors which would affect its supply and demand. For example, seasons will play a huge factor because people will not wish to vacation to that park during seasons which would make it unpleasant. This also applies to the location and geography of the theme park. Is it catered to a warm climate? A cold climate? During a pleasant summer climate, for example, tickets for the theme park will be on high demand, which will decrease supply. During off seasons, however, the tickets will be in less demand and have an increase in supply. An additional factor which may affect supply and demand is the type of consumers the theme park caters to. If it is an adult theme park, then perhaps major holidays would be in higher demand since adults have time off from work. If its family oriented, it would be less of an impact on major holidays–however, still a significant impact.
In a struggling economy, many families are looking toward substitutes for their theme park vacations. One could be investigating on a backyard playground. The family can save money in the long run by constructing their own attraction in their backyard. In addition to this substitute, there are many vacation alternatives which are less expensive than a theme park. Families will drive to the coast so that they can play at the beach, theyll drive to higher elevations so that they can do snow activities. Taking the family to a park, doing activities at a lake, or camping are additionally appropriate substitutes for a theme park vacation. Recently, local communities have developed miniature theme parks which are much smaller and do not offer as many rides. They are, however, much less expensive than large theme parks. These facilities are becoming popular and I believe families often take advantage of these so that their families can still experience the theme park vacation without spending a large amount of money. Thriller sports are also becoming popular for those who still want to experience the thrill of rides, but not go through the entire theme park experience. These sports include sky diving, bungee jumping, paragliding, and cliff jumping. There are many thrill seekers who pick this as a substitute for theme parks. I believe families are very inclined to turn to the substitutes when they do not feel financially able to do the theme park vacation. These substitute companies seem to benefit as that substitute rule.
Complements for a theme park vacation good can be a drop in gas prices or airfare. If a family has the option to travel for a reduced rate, they are more inclined to do a destination vacation such as a theme park. This would also include a drop in hotel prices as well as restaurant prices. A family will be able to make easier room and