Thursday, June 28, 2007

The Demand for Fireworks

With the 4th of July just around the corner, fireworks are hitting their peak season. The Zambelli family leads the pack in firework displays. During this time of year they have to hire 2500 additional employees to cover the increase in demand for firework productions. How does Independence Day impact the market for fireworks? The average firework show costs $10,000, but the prices spike up to $450,000 during this time of year. The fourth of July also impacts other markets. Idahoans are still spending money to travel despite the mid-week holiday and high gas prices. Around the country though, gas prices remain high and travelers will remain low because of the way the holiday falls and the decrease in demand to travel.

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