Being a senior student means:
You love seeing movies
especially at movie theaters like CINEPLEX ODEON.
You may grudgingly pay around $12 for a ticket, but a movie is a movie, and you are generally guaranteed a good time.
This is the element of Demand. If refers to the various quantities of a good/service that people will be willing and able to purchase at various prices during a period of time.
But what if the price of a movie suddenly skyrocketed to
$25?
$30?
Or consider if your usual Small Popcorn went from $4.75 to $8.00 instead.
As the price of a product goes DOWN, the quantity demanded increases, and as the price of a product goes UP, the quantity demanded decreases. However, movie theaters raise prices MINUTELY.
Looking at the prices of movie tickets/food, someone may think twice about seeing the newest flick...especially if the movie isn't "worth it".
Note: there is an inverse relationship between price and quantity demanded
This is the element of Demand. If refers to the various quantities of a good/service that people will be willing and able to purchase at various prices during a period of time.
But what if the price of a movie suddenly skyrocketed to
$25?
$30?
Or consider if your usual Small Popcorn went from $4.75 to $8.00 instead.
As the price of a product goes DOWN, the quantity demanded increases, and as the price of a product goes UP, the quantity demanded decreases. However, movie theaters raise prices MINUTELY.
Looking at the prices of movie tickets/food, someone may think twice about seeing the newest flick...especially if the movie isn't "worth it".
Note: there is an inverse relationship between price and quantity demanded
The factors that shift demand include:
Income:
If you receive a pay increase, your demand for movies will increase because you can be more frivolous with your money
OR
If you have a pay decrease, your demand for movies will decrease because you likely can't afford to spend money on entertainment.
Prices of Related Goods:
The price of Popcorn increases, so the demand for Fries increases
OR
The price of Popcorn decreases, so the demand for Fries decreases.
2) Complements: goods that go together e.g. Chocolate Bar + some Candy
The cost of Chocolate Bars decreases, so the demand for Candy decreases
OR
The cost of Candy increases significantly, so the demand for Chocolate Bars increases.
Tastes/Preferences:
OR
There aren't any "good" movies coming out, so demand for movies decreases.
Expectations:
VS.
OR
For 4 months, theaters only show movies that appear "stupid", "boring", or "lame", so demand for tickets decreases.
Population:
OR
Many senior students in your town/city move away to attend college/university/work, so demand for a movie theater decreases.
