Is price gouging evil or is it the sensible economic decision when shortages arise? In this series, John Stossel explores price gouging around natural disasters. This topic is really good for discussing the tradeoff between equity and efficiency.
Frozen — Big Summer Blowout
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.