Final answer:
The demand for gym memberships remains unchanged when there is a change in their price because this only affects the quantity demanded. Shifts in demand occur when other economic factors, such as expectations about future prices or the price of complementary goods, change.
Step-by-step explanation:
The demand for a good such as gym memberships does not change with a change in the price of the gym membership itself. This is because a change in price affects the quantity demanded, not the demand. The law of demand states that there is an inverse relationship between price and quantity demanded, meaning as price goes up, the quantity demanded goes down, and vice versa, assuming all other factors affecting demand remain constant.
However, we see shifts in demand when there are changes in other economic factors such as buyer's income, tastes and preferences, the price of related goods, and expectations about future prices. For instance, if the expected future price of gym memberships is set to increase, people might rush to sign up for long-term contracts now, shifting the current demand curve to the right. In the same way, a change in the price of a complement good, such as bottled water, which is often consumed alongside gym sessions, can influence demand. If the price of bottled water decreases, it can make gym-going more attractive, potentially increasing the demand for gym memberships.