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April 17, 2014

Homework Help: Everst

Posted by Beverly on Wednesday, October 26, 2011 at 1:54pm.

Suppose you are a stock market analyst specializing in the stocks of theme parks, and
you are examining Disneyland’s stock. 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?

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