The Simpsons — Valentine’s Day

Homer forgets its Valentine’s Day so he has to rush off to the Kwik-E-Mart to pick up a last minute gift. Seeing that Home is desperate, Apu takes the chance to raise the price on a box of chocolates to $100. Despite Homer’s annoyance, he pays the higher price because he knows he’ll be in trouble if he comes back empty handed. After threatening never to shop their again, Apu offers him a discount on other products to keep him from shopping next door.

Ebay — 12 Days Commercial

 

One of the tough parts of buying Christmas gifts is that we don’t have perfect information regarding what the other person really wants. This issue often leads to us buying gifts for people based on what we think they’d like. This commercial from eBay points out that you can find a variety of gifts that someone would put on their list are low prices if you shop on eBay.

Christmas with the Kranks — Hickory Honey Ham

This scene is from the movie Christmas with the Kranks involves a specific type of ham that has been sold out and Mrs. Krank needs one because it’s Christmas Eve and her daughter flew in for Christmas.  She pays above the sticker price of the ham because it was the last one available in the store. Because there is only one ham left and it doesn’t matter how much the ham costs, Mrs. Krank will buy it.  This means that Mrs. Krank’s elasticity for hickory honey ham is very inelastic.

Thanks to Salvatore Pollastro for the summary and the clip!

The Real — Thanksgiving Tap Out

Guest co-host, Ashanti, mentions that expensive flights during Thanksgiving should be “tapped out” because a lot of people need to be with their families during Thanksgiving. This relates to the concept of demand and supply because the airlines know that when it is close to Thanksgiving, the demand for flights increases, and since most people are eager to be with their families, they are rather inelastic to the price change, so the firms take advantage of this and raise the price of the tickets drastically in order to increase their total revenue.

Thanks for the clip and summary Tammy Georgewill!

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