Are Tickets for Thorpe Park Price and Income Elastic?
… a commodity Price Elasticity Hypothesis: I believe that the price of Thorpe Park tickets is inelastic because: There are little or no substitutes for Thorpe Park. The nearest theme park is Chessington World of Adventures, which is at least 50 miles away. This means that if there was a change in the price of the tickets the customer would have no cheaper alternative to turn to. Therefore they would carry on buying the service Thorpe Park provides. However the more general you define the industry the more elastic it would become e.g. a swimming pool or a zoo etc. Thus making a lot of substitutes to Thorpe Park. The second reason is the proportion of income spent on the commodity. There is a relatively low proportion of someone’s income spent on a ticket for Thorpe Park. Therefore if the price were to rise by 10% out of a 20 ticket it would only mean …
