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Using a supply and demand diagram, assess two reasons why live entertainment business revenues in the UK might have increased in 2017. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Question 1
Using a supply and demand diagram, assess two reasons why live entertainment business revenues in the UK might have increased in 2017.
Worked Solution & Example Answer:Using a supply and demand diagram, assess two reasons why live entertainment business revenues in the UK might have increased in 2017. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Step 1
Reason 1: Increased Number of Festivals
Answer
The number of festivals in 2017 increased, which likely contributed to rising revenues. Better weather conditions may have encouraged more outdoor events, leading to greater attendance. As demand for tickets grew, this could have pushed revenues higher through increased ticket sales, driven by the popularity of events featuring big acts like Ed Sheeran.
Step 2
Reason 2: New Shows and Performances
Answer
The introduction of new popular shows and performances also played a significant role. For example, the Broadway musical 'Hamilton' debuted in the West End, attracting large audiences. The combination of high-quality performances and the buzz around new releases could have fueled demand, allowing businesses to price tickets at levels that maximized revenue despite potentially lower attendance.