Gym Memberships and Market Demand
What factors can influence the demand for gym memberships?
The demand for gym memberships does not change when a change in ________ occurs
A. the price of a gym membership
B. the population
C. the expected future price of a gym membership
D. the price of bottled water (bottled water is a complement of a gym membership)
Factors Influencing Gym Membership Demand
Final Answer:
The demand for gym memberships is unaffected by changes in the price of bottled water due to the nature of complementary goods, but it can be influenced by expectations of future prices.
When exploring the factors that affect the demand for gym memberships, it's essential to consider how different variables can impact consumer behavior. In this scenario, the relationship between the price of bottled water and gym membership demand is particularly intriguing.
According to economic theory, goods can be categorized as substitutes or complements. Substitutes are products that can be used interchangeably, such as tea and coffee. Complements, on the other hand, are goods that are consumed together or enhance each other's value, like smartphones and phone cases.
The demand for gym memberships does not change when the price of bottled water, a complement to gym memberships, fluctuates. This phenomenon is rooted in the concept of complementary goods, where the demand for one product is tied to the demand for another. When the price of a complement rises, consumers are less likely to purchase both goods, leading to a decrease in the demand for the related product.
However, the expected future price of gym memberships can influence current demand. If consumers anticipate a price increase in the future, they may choose to sign up for memberships now to avoid higher costs later. This forward-looking behavior can trigger a temporary surge in gym membership demand.
Therefore, while changes in the price of bottled water may not directly impact the demand for gym memberships, factors like future price expectations can play a significant role in shaping consumer decisions in the fitness industry.