The local shop owner is having a big summer blowout sale and prices are low! The problem is that in this magical world, summer items aren’t exactly in high demand.
Thanks to Christine Cai for the clip!
Pixar — One Man Band
This clip is a great introduction to monopolistic competition. Each performer provides a similar service, but they are not perfect substitutes for one another. When a new competitor enters a market, the demand for the original firms decreases and profits should fall as well.