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.
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.
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.
Glenn announces a winner of the search for the store’s new Santa position. When the winner asks about the salary, Glenn tells him that he will be paid in smiles and wonder and so many other things. The winner quits, along with almost everyone else. There is one person who stays: an employee of the store.
Garrett announces that there will be a 40% reduction in the price of exercise gear because the store is closing that section due to a lack of interest. If people aren’t buying the products on the shelves, Cloud 9’s opportunity cost may be high enough to encourage them to remove that section and replace it with a more profitable item. The price reduction should increase the quantity demanded for the exercise gear.