The monthly cost of premium memberships at urban bouldering and climbing gyms has reached a historic high. Over the past year, up to November 2024, the average price of an unlimited monthly subscription has risen by almost £18, and now stands at £95.00. Gym operators have reported a massive surge in interest, spurred on by climbing's inclusion in recent Olympic games, resulting in waitlists of over 5,000 people at peak hours in several major facilities. At the same time, the operational costs of running these facilities have escalated sharply. Gyms are facing significantly higher public liability insurance premiums alongside stricter health and safety regulations regarding indoor particulate air-filtration and ventilation systems, despite some smaller facilities receiving municipal fitness and wellness development subsidies.
Explain why the price of "an average unlimited monthly subscription has risen by almost £18" (Extract A). Use a supply and demand diagram in your answer.
