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?

This might help:

http://www.cals.ncsu.edu/course/are012/lectur20.pdf

To analyze the impact of events on ticket prices and attendance at Disneyland, we need to consider demand and supply factors.

1. Demand Factors:
- The report from The Wall Street Journal states that tourism has slowed down in the United States. This implies a decrease in the number of potential visitors to Disneyland, which leads to a decrease in demand.
- At Six Flags Magic Mountain, new attractions such as the Viper roller coaster and Psyclone ride are opening. These new offerings can potentially attract visitors away from Disneyland and increase demand for Six Flags.

2. Supply Factors:
- With decreased demand, Disneyland may need to adjust its ticket prices to encourage more people to visit. This could lead to a decrease in ticket prices.
- Lower attendance can also affect supply decisions, as Disneyland may reduce its output and the number of rides and attractions available to visitors.

Based on these factors, it is consistent with the prediction using demand and supply analysis that Disneyland would slash ticket prices and admit a lower attendance. This is because decreased demand and increased competition from Six Flags Magic Mountain would put pressure on Disneyland to adjust its prices and potentially reduce its output.

Regarding the law of demand, it is important to note that the law of demand states that as the price of a good increases, the quantity demanded decreases, ceteris paribus (all other factors held constant). In this case, both ticket prices and attendance are falling, which would seem to indicate a violation of the law of demand.

However, in the world of fantasy, where Disneyland operates, there may be additional factors at play. For example, the perception of a decrease in demand may lead to lower prices in order to attract more visitors and maintain the magical experience. It's also possible that Disneyland's brand value and loyal customer base allow it to adjust its prices without affecting demand as significantly as in other industries. Therefore, while the observed trend seems counterintuitive to the law of demand, it's important to consider the unique characteristics of the market in question.