The cost of attending major UK music festivals has hit record highs. In the past year alone, up to October 2023, the price of an average weekend ticket has risen by almost £25, now standing at £245.00. Organisers reported unprecedented demand, with queues of over 100,000 people online attempting to secure tickets within minutes of release. Concurrently, the operational costs of staging these festivals have climbed steeply, driven by rising artist fees and stricter ecological compliance and waste management regulations, despite some smaller boutique events receiving regional arts council development grants.
Explain why the price of "an average weekend ticket has risen by almost £25" (Extract A, lines 2–3). Use a supply and demand diagram in your answer.
21 exam-style questions on Edexcel A A Level Economics 1.2.6 Price determination. Each one has a worked solution and a mark scheme showing where the marks go.