Categories
Supply & Demand

Bo Buys a Hot Tub

Glenn and Jerusha want to have another child, but they need to find a surrogate. Cheyenne mistaken agrees to do it and tries to back out, but her boyfriend is supportive of the decision after learning that they’ll earn $20,000. He decides to spend that money (which he calls infinite money) on a new hot tub. The increase in their income results in an increase in their demand for normal goods. In this case, the hot tub is likely income-elastic.

Categories
Labor Supply & Demand

Discount Surrogacy

Glenn has found a potential surrogate online, but it seems more like he may be interviewing a kidnapper. While he believes he’s interviewing a potential surrogate, he goes through the process of identifying her reservation wage. A reservation wage is the lowest amount that a worker is willing to accept. He mentions that he and his wife only have $20,000, which the surrogate agrees to. He then lowers it to $15,000 and she still is willing to accept it. When he tries to go down to $10,000 she notes that it’s too low. Because Glenn is willing to pay $20,000 for a surrogate, any price below that will result in consumer surplus for his family.

Categories
Health Supply & Demand

Healthcare or a Messenger Bag

Mateo came down with an ear infection and his coworkers helped raise funds from store customers. He was secretly able to get some antibiotics so the money that was raised doesn’t need to go to a doctor’s visit. Instead, he considers spending the money on a messenger bag instead of healthcare.

Categories
Principles Supply & Demand Unemployment

Paying to Have Your Photo Taken

Glenn has brought all of his previous foster children to the store so that he can get a group photo with all of them. While working in the backroom, Glenn mentions to Cheyenne that his family used to own a photo studio. Cheyenne is surprised that people used to pay to have their picture taken since she has grown up with digital cameras and cell phone cameras. With these inventions, there’s really not a reason to pay to have your photo taken, but Glenn says it was mainly for families and lonely women with dogs.

Categories
Supply & Demand

Demand During Rebranding

Cloud 9 is rebranding their store product line, moving from Halo Brand to SuperCloud. With the switch, the store has marked the old products down by 80%. Cheyenne wants to buy as much of the old merchandise as she possibly can because of the discount. Glenn tells her she cannot set those items aside during store hours, but she is scared they will be all gone by the time her shift is over. She decides to try and hide the products around the store.

Categories
Supply & Demand

A Sudden Increase in Income

Jonah finds a wallet with $906 in the shorts that Amy ended up with in a lost and found activity. Amy wants to pay her pending bills or help her family with household repairs. Jonah convinces her to spend it on herself, instead of doing something that he considers boring. Amy decides she wants to treat herself to a spa visit. When the other employees find out that she has that money, they ask for things for the break room that are needed, but also ask for things that would be considered luxuries.

Categories
Supply & Demand

Shortage of Pepto

A lot of the employees have food poisoning from the morning’s potluck. Mateo approaches Cheyenne about some Pepto Bismol, but she raises the price to account for the fact that she has purchased the entire store’s stock.

Categories
Supply & Demand

Looking for a Bribe

A customer is looking for a particular coffee maker, but Cheyenne and Mateo tell him they can get another from the stock room if they are offered a bribe. If prices weren’t so low, there would probably be an adequate stock of items on the shelves. Cheyenne and Mateo try to initiate a black market transaction in response to this shortage.

Categories
Supply & Demand

Black Friday Purge

It’s Black Friday and customers are in a rush to get the good deals. Before Dina can unlock the doors, the crowd knocks the doors down and rush for the deals. These low prices will cause a shortage and impact the allocation of items among consumers.

Categories
Supply & Demand

Black Friday Bribes

As customers stand outside waiting for the store to open, one of them offers Mateo and Cheyenne $40 each to put aside one of the TVs that is on sale. Because prices are so low, there won’t be enough for all of the customers that want a TV, creating a shortage among the waiting customers. Having people wait in line helps allocate the items based on people’s willingness to spend time rather than money, but this man would prefer to have the item allocated through a black market transaction.