Tag: shortages

Community — Chicken Finger Shortage

Chicken fingers at the school cafeteria are a hot commodity! People are racing to the cafeteria to get them and demand is high, but they often run out before everyone can be served. If prices were higher then fewer people would want chicken fingers and there may be enough for everyone to get some, but instead, a shortage ensues. The original fry cook skims some of the tenders to give to select people, an example of inefficient allocation.

A group of close friends decides to take over the operation (like in a mafia movie) so that they can determine the allocation of this scarce resource. This group begins skimming the fingers as well and reselling them to others in the school at higher prices so that they can profit from the shortage.

Thanks to Sarah Corrigan for the clip recommendation!

0

Moscow on the Hudson — Coffee Aisle

 

Robin Williams stars as a defected Soviet living in the United States in Moscow on the Hudson. His shift from communist markets to American-style markets is a bit overwhelming as he visits a grocery store to find the coffee aisle. After realizing that there’s no line to buy coffee and that there are a dozen varieties of coffee, he passes out in the middle of the store.

4

Real Husbands of Hollywood — Kevin Needs His Sneakers

Kevin needs to get a pair of sneakers for his son, but only Nick has any around. Even though he hates Nick, he feels like he needs to pay big money in order to secure a pair for his son. By choosing to limit the number of shoes available, a shortage exists for the sneakers. Only toward the end do we learn that a black market dealer may have access to another pair of shoes.

Thanks to Ryan Welch for the clip!

0

John Stossel — Spontaneous Order

In this Stossel in the Classroom segment, John Stossel analyzes political promises and looks at how government intervention actually can harm business. A good portion of the video focuses on how the invisible hand dictates much of what we see occurring in our lives and how centrally planned economies like the Soviet Union break down.

0

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.

0

Up ↑