Bowood Kwok 4A (14) F.4 Economics: News Analysis Sources: South China Morning Post Date: 26-11-2004 Summary Hong Kong Disneyland will open on September 12 next year; ticket price will be the cheapest of any Disney Park of the world. Unlike the other parks, which have fixed price one-day ticket, entry to Hong Kong Disneyland will cost more on what Disney calls “special days”. The special days include weekends, public holidays, all days in July and August and the mainland’s “golden week” holidays in May and October. The Price for peak periods is still lower than the admission fees at the other four Disney Parks. The price would be the most acceptable to customer in Asia. Explanation The price of the ticket for adults: Weekdays $295 Weekends and public holidays $350 According to the law of demand, when the price increases, quantity demanded decreases, vice versa, ceteris paribus. P 350 295 D 0 Q Qd2 Qd1Qd1 Qd1 Ticket price for adults The price if the adult tickets will decrease from $295to $350, quantity demanded of the tickets will decrease. Children below three years old will enjoy free admission. However, the free admission is not a free good. Because a free good is sufficient to satisfy all our wants. More of the ticket is not preferred. People will not pay or give up anything for it. It doesn’t have a cost of production. The fee admission ticket is an economic good. The ticket is a superior (normal) good. The increase of income leads to increase in demand for it, vice versa. If people get richer, more people will buy the ticket, the demand of it increase. If the people get poorer, less people will buy it, the demand of it decrease.