Quote:
Originally Posted by Locke
2. Cost of tickets vs. Payroll Expense is irrelevant. Its not about how much they're spending on payroll its about overall costs and pricing tickets as to what the market will bear.
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This is not completely accurate, Locke. As is the often misused "Ticket prices have nothing to do with salaries and everything to do with supply and demand".
Salaries certainly have an effect on the supply side of supply & demand. They are an input cost and as the input cost of an item increases, the supply curve for that items shifts to the left, resulting in a new intersection point of the supply and demand curves.