In the UK, monthly fees for gym memberships vary. For example, the following charges can be made for access to fitness facilities:
A personal trainer or fitness instructor can choose to offer sessions at municipal centres, private fitness clubs, or both.
Using the data above, which one of the following is a function of the price mechanism in the market for private fitness memberships?
Acting as a signal to personal trainers when deciding whether to offer their services at private fitness clubs
Eliminating a shortage of private fitness spaces by allowing the price of private club memberships to fall
Encouraging government intervention to set national physical activity targets
Incentivising fitness instructors to offer only municipal leisure-centre sessions
