Categories
Market Structures Supply & Demand

Pink Tax

Jonah has dressed up a few mannequins to represent women doing particular jobs in the store. Dina comments on how this t-shirt activism is really helpful for the store’s profits, particularly because the outfit that Jonah has put together has a higher price tag than a similar combination targeted at boys. Jonah argues that it promotes gender equality, but Dina points out that the shirt costs $12.99 for women, but only $7.99 for men. Jonah tries to argue from a cost perspective, noting that glitter is more expensive, but Dina argues that it’s just a pink tax, charging women more for the same product, like clothes, razors, and deodorant.

Categories
Market Structures

First Class Ticket to Heaven

Myrtle dies but has left Jonah $1,000. Feeling guilty, he gives it to Glenn because Glenn seemed so much more upset by Myrtle’s death. Glenn, after talking to his pastor, has decided to give it to his church so that Myrtle has a guaranteed path to heaven. Pastor Craig has convinced Glenn to donate the entire $1,000 so that Myrtle has a first-class experience to heaven. A lower price only gets her to heaven in economy-class. After realizing that Glenn fell victim to a scam, Jonah takes the money back.

Categories
Market Structures

Marital Differentiation

Cheyenne and Bo have decided to move their wedding date forward in an effort to end their constant bickering, and Glenn is there to help. He calls his church to see if there’s an open date in the near future. It turns out his church acts just like other monopolistically competitive firms by offering differentiated services, like the option to select either a white or black choir. They practice price discrimination by rewarding Glenn with referral points to the gift store and offering a nuptials package that entitles Bo and Cheyenne to 50% off a baptism.

Categories
Market Structures Supply & Demand

Wedding Premium

Garret notices that the store sells two dresses that look identical, but one is marketed as a white dress and the other is a white wedding dress. The wedding dress costs $200, but the other dress only costs $30. The wedding industry is notorious for high markups on products that are labeled for weddings because brides and grooms often have fairly inelastic demand for their products. Because of this inelastic demand, firms are able to price discriminate and charge higher prices.

Categories
Market Structures

Cornering the Market for Gay Weddings

Glenn is embarrassed about how he handled a gay couple earlier in the episode and he seeks Mateo’s help in trying to differentiate their product offering by providing a section tailored to gay weddings. Even though Mateo points out that it’s the same as s straight wedding, Glenn is convinced they should setup a section specific to gay weddings. Product differentiation is a characteristic of monopolistically competitive firms. By offering a specific section of the store to one group of people, Cloud 9 can set themselves apart from other retailers.