Forrest Gump — Only Boat Left

 

Forrest easily enters the shrimp market by buying a boat. There are multiple buyers and sellers, and no one shrimping boat controls the price of shrimp. Therefore the shrimp market is an example of perfect competition. Once the hurricane hits it forces all the other boats to exit the market. Turning the market into a monopoly. Forrest is the sole supplier of the product, controlling the entire market, turning it into a monopoly.

Thanks for the clip and summary Keagan Rallis

John Stossel — Price Gouging

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.

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