One way that companies can reduce supply without customers realizing it is by changing the size of the packaging. This actually makes the per unit price higher, which matches with the theory of decreasing supply. This decrease in supply could come from changes in input prices or perhaps shifts in agricultural markets, like freezes in Florida and oranges.
The Daily Show — Wage Against the Machine
This video does a nice job of describing many of the economic arguments for and against raising the minimum wage in a comical way. The clip is a few years old, but it still does a nice job of discussing many of the common arguments. Note: the clip does include a supply and demand graph, but it labels supply and demand incorrectly! This is a good opportunity to discuss economic misconceptions, as well as the labor supply and labor demand curves.
Thanks to Rebecca Chambers for the clip and description!
Prison Break — What is Game Theory?
In the re-boot of Prison Break, we look at how game theory impacts the decisions made by Michael Scofield. It starts with the idea that players in the game are focused on self-interest even when it comes at the expense of other players in the game. The setup is described as a one-shot game where players focus on themselves with no future implications.
Big Bang Theory — Rock, Paper, Scissors, Lizard, Spock
Sheldon isn’t a fan of traditional rock, paper, scissors so he introduces a new variant of the game with two more options, which increases the number of possible outcomes. The guys decide to use RPSLS to solve their disagreements, but they seem to struggle with the notion of needing to have mixed strategies. While Spock is not a dominant strategy in this game, the others don’t seem to comprehend ways to beat the throw.
For more Big Bang Theory clips, check out Bazinganomics!
How I Met Your Mother — Past Ted’s Fault
In behavioral economics we begin to study why people procrastinate. If you are teaching Time inconsistency either in your behavioral section of microeconomics or in a full class on behavioral economics, this is a nice short clip to motivate discussion.
This clip and reference come from James Tierney!
Always Sunny — When is Stuff Art?
Frank convinces an art gallery director to come to the bar in order to try and convince her to buy their bad art. After looking around and watching a homemade video, she describes how art is worth what the buyer is willing to pay and that everyone has different preferences and values items differently. She also discusses the double coincidence of wants and how she no longer wants to buy back Frank’s painting.
Thank you to Ian Pearson for the clip reference!
Always Sunny — Monopolizing the Trash Industry
When the local garbage companies go on strike, Frank comes up with a plan to have Charlie, Mac, and Dennis go around and pick up trash. Initially they are slated to get a van and go door-to-door, but they realize it may look better if they drive around in a limo to pick up the trash. What they don’t realize is that customers don’t really care because they just want the trash gone and are willing to pay high prices for it to be removed.
Always Sunny — Mac and Charlie Get a Job
After Dee has a heart attack and finds out she doesn’t have health insurance, Mac and Charlie go on a quest to get a job that includes healthcare benefits. They decide to apply to a job together, but since they only care about the healthcare part of the job, they end up accepting a minimum wage job.
Always Sunny — The Cost of Health Care
After Dee has a heart attack, she heads to the hospital only to find out that she doesn’t have insurance because her dad canceled the policy when they were younger. Mac and Charlie are confused that people have to pay to stay in a hospital because they think of it like a public good similar to police and fire protection, which is nonexcludable.
Frank shows up to get a full body health scan because he’s been having a bit too much fun. This line alone is a great clip for teaching moral hazard when it comes to healthcare.
Always Sunny — Frank the Art Collector
Frank poses as an art collector to try and convince the art gallery owner that a really bad piece is actually really valuable. This clip is a great segue into subjective value and preferences of individuals.