alt Hacker NewsTwo people can't use a machine at the same time is the issue. If you have 50 machines and 200 customers all of whom want to be in the gym 18 hours per day that's quickly going to lead to cancelled subscriptions. Now you need more space and machines or some other way to balance things.
Agreed, but it's an indirect causal link, not a direct one. If the demand far outstrips the possibly supply the demand will have to go down, and it can either go down by people accepting that they can't be in the gym as much time as they would like, or as you say by memberships being cancelled (in which case the price may go up or something else might change).