The Law of Demand at Disneyland When Ticket Prices Decrease
Suppose you are a stock market analyst specializing in the
stocks of theme parks, and you are examing Disneyland’s stocks. The Wall Street
Journal reports that tourism has slowed down in the United States. At Six Flags
Magic Mountain in Valencia, California, a new Viper roller coaster is now
operating and another new ride, Psyclone, will be opening this year. Using
demand and supply analysis, predict the impact of these events on ticket prices
and attendance at Disneyland. As reported in The Wall Street Journal,
Disneyland slashed ticket prices and admitted that attendance was somewhat
lower. Is this consistent with your prediction using demand and supply
analysis? In light of the fact that both price and output were falling at
Disneyland, is the law of demand being violated in the world of fantasy.
