ECON Essay Example | Topics and Well Written Essays - 2250 words

ECON - Essay Example The prices are usually categorized according to age where senior members pay more than the young generation while VIP tickets sells more than terraces. The categories have created price discrimination in the market even though the service offered is the same. The industry can be described as a competitive market where entry and exit are free. As more industries make more money, many firms are expected to join the market. But there is less government support as they see no value in the service provision and assumes population growth rate is on the decline. However, it seems all this are based on baseless facts and the reality is that, demand is increasing and so should the supply. Price is majorly determined by the owners and is usually distributed among the population so that they can attract more sales. The market though does experience a lot of competition from other quotas2. This major competitor has been the National Television live streaming that is almost free to the consumers at their door steps. Hence, the less privileged in the society resorts to in house entertainment rather than spend exorbitantly on the grand cinemas. The market is hence denied a lot of revenue reducing their profitability in the industry. Demand and supply are two economic policies that majorly dictate the consumption patterns by the consumers. Data from the governmental surveys shows an increase in population in the near future. The demand would increase as the grand cinemas becomes most satisfactorily. Population census also suggests that the young generations are the majority groups attracted to grand cinemas. The fluctuations are expected to increase the demand adding to the fact that leisure has become a priority to other populace3. Due to the rise in demand and for the market to clear out, supply is expected to increase that will reduce the market equilibrium prices so that the general consumer can gain from the venture. Below is a