Supply and demandDemand and supply are two crucial elements for the success of a company. Demand is the quantity of product/service needed to satisfy the need. Supply is the quantity of a product/service available to satisfy that need (at a specified price). Since the service offered by the company is luxury, the amount requested by customers will be greatly influenced by the economic situation. Therefore the main factor that will influence demand is price, i.e. the price of tickets, food and goods. This means that in times of recession and during periods of widespread financial distress, the company is likely to see a decrease in demand for its service. As stated in (Mintel 2010) “Half of those who participate in recreational activities have reduced at least one activity during the recession. Three in ten have cut three or more businesses.'' However, fortunately for the company, more recent reports highlight that this may not be a concern. ''Data for the third quarter of 2013 show that consumer spending activity increased 0.8 percent, faster than any quarter since 2010.'' (Mintel 2013). Other factors that can also influence demand for business services include service quality, consumer taste, population size, advertising, and the number of competitors in the market (Econport 2006) – which is not a concern due to rarity of the service. (Appendix 1) The amount of product/service the company is willing to provide depends on how much customers are willing to pay. Producers will try to get the highest possible price while customers will try to get the lowest price, meaning that the price of a product eventually balances out with the "equilibrium" price. In this case, the...... middle of paper......nglandbasketball.co.uk/articles/article.aspx?aid=287&pid=668 . Last accessed 2 January 2014.• ITV plc. (2014). Let's talk about costs. Available: http://www.itvmedia.co.uk/tools/rates. Last accessed January 3, 2014.• Monster. (2013). Average UK salaries. Available: http://career-advice.monster.co.uk/salary-benefits/pay-salary-advice/uk-average-salary-graphs/article.aspx. Last accessed 3 January 2014.• Radio advertising. (2013). How much does advertising cost? Available: http://radioadvertising.co.uk/costs. Last accessed 3 January 2014. • SLOMAN, J and WRIDE, A (2009) Economics, 7th edition. • Printing Direct UK. (2014). Print A4 flyers. Available: http://www.printingdirect.com/products/leaflets.php?s=a4 2014. Last accessed 2 January 2014.• Sports England. (2012). Financing. Available: http://www.sportengland.org/funding/ . Last accessed January 4th 2014.