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How to make gym profitable
How to make gym profitable
Today it is very important to keep one's business up and to make profit. Recession was especially cruel to small business. That is why the main task of modern economics is to revive small companies. This article will demonstrate how to make gym a profitable enterprise.

In the case when the government imposes a price ceiling on gym membership fees, the consequence is a shortage on the market. This results in lower supply and higher demand (movement along the curve, in neither case does the curve shift). This occurs because the new price is below equilibrium at which level demand is much greater than supply.

Funding an education program is likely to increase the appeal of gym membership (for the purpose of simplicity we can assume the public is a homogenous mass). Thus, the demand increases, at constant price levels, meaning the demand curve will shift right. This will result in a higher equilibrium price (and higher quantity of memberships purchased)

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