F.4 Economics―News Analysis
The Hong Kong Disneyland is going to open. Recently, the HK government
announces the ticket price of the Disneyland in Hong Kong. The fee is the lowest in
the Disneyworld in the world. One reason is that the Disneyland in Hong Kong is the
smallest in the world. And the most important reason is that, the low admission fee
can attract many tourists and local people.
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P1
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Disneyland in HK
In accordance of the diagram above, there is a fall in the price of the ticket fee of
Disneyland (a fall in price compared to the ticket fee of other countries), so it causes a
movement along the demand curve, and there is an increase in quantity demanded.
The government also aims at attracting tourists from the Pearl River Delta as they
can’t all afford to go to the Disneyland in Japan. As the Disneyland in Japan and the
Disneyland in Hong Kong are substitute, that’s mean they can be replaced by each
other. We can make the diagram below.
With reference to the diagram drawn before, we know that there is an increase in
quantity demanded of the Disneyland in Hong Kong, it will cause a decrease in
demand for the Disneyland in Japan.
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Disneyland in Japan
The demand of the Disneyland of Japan will decrease not because of the price of the
ticket fee increase, it is because the Disneyland in Japan and the Disneyland in Hong
Kong are substitute, that’s mean they can be replaced by each other. And so, if the
tourists from the Pearl River Delta don’t go to the more expensive Disneyland in
Japan, instead of it, they will go to the Disneyland in Hong Kong.
Janice Ho F.4A (12)