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What do the laws of supply and demand suggest they do here? And how does their operating income (prices) factor in?Increasing supply will cause the equilibrium price to fall. The current equilibrium price, while not optimal from a demand standpoint, is what’s been holding the line revenue wise.Factor in that “higher guest spending” is likely due to their revenue streams that take advantage of their low capacity offerings, there is a disincentive to increase supply at the parks (parks parks, not DCL parks).
What do the laws of supply and demand suggest they do here? And how does their operating income (prices) factor in?
Increasing supply will cause the equilibrium price to fall. The current equilibrium price, while not optimal from a demand standpoint, is what’s been holding the line revenue wise.
Factor in that “higher guest spending” is likely due to their revenue streams that take advantage of their low capacity offerings, there is a disincentive to increase supply at the parks (parks parks, not DCL parks).
