Asked by Tabitha Mooney on Jun 04, 2024
Verified
If memberships in health clubs and hospital fitness centers are substitutes and the price of health club memberships rises,what will happen?
A) Demand for health club memberships will fall.
B) Demand for health club memberships will rise.
C) Demand for hospital fitness center memberships will rise.
D) Demand for hospital fitness center memberships will fall.
Substitutes
Products or services that can replace each other in usage, providing consumers with choices.
Health Clubs
Facilities that offer a variety of exercise equipment, classes, and services to individuals looking to improve or maintain their physical fitness.
Hospital Fitness Centers
Facilities located within or associated with a hospital, offering fitness and health services to patients and sometimes the public.
- Recognize the effect of substitutes on market demand.
Verified Answer
AB
Ashley BucherJun 07, 2024
Final Answer :
C
Explanation :
If the price of health club memberships rises, consumers are likely to seek cheaper alternatives. As memberships in health clubs and hospital fitness centers are substitutes, the demand for hospital fitness center memberships is likely to rise. This is because hospital fitness centers may offer lower prices or discounts to attract consumers who are seeking alternatives to expensive health club memberships.
Learning Objectives
- Recognize the effect of substitutes on market demand.