Supply And Demand Analysis Analysis Essay Example

return on their investment, it could result in loss of profits. Other factors that impact demand for National CineMedia include the cost of movie tickets, concessions, and the quality/type of movies shown. Additionally, the quantity supplied will increase as prices increase, making it a probable supply driver/shifter.

The relationship between price, demand, and supply is demonstrated through Supply & Demand Analysis5. When there is an increase in the purchase of movie tickets and snacks at theaters, it attracts regional and national clients which leads to increased advertising with National CineMedia. This creates a ripple effect where a larger client base results in more competitive advertising prices and outreach to potential clients. Additionally, the quality of Hollywood movies impacts in-theater advertising supply as high-profile releases have a greater potential for drawing consumers in and affecting advertising demand.

NCM must take into account multiple factors, such as economic conditions and consumer confidence, as well as supply and demand drivers to fulfill the demand for "The Dark Knight" movie. It is expected that equilibrium between supply and demand will be achieved within three years. Despite reduced financial confidence among consumers, cinema industry affordability in comparison to costlier activities like air travel or theme parks has made it resistant to economic downturns. This indicates that an equilibrium and price elasticity probably exist within the sector of in-theater advertising business.