Discussion Board 1 Microeconomics


 

Watch the video clip from Jingle All the Way.   (View Transcript.)   

Consider the following:

Prices serve a rationing function. When quantity demanded exceeds quantity supplied, prices rise to alleviate the shortage. When quantity supplied exceeds quantity demanded, prices fall to alleviate the surplus. However, when prices are inflexible, shortages and surpluses persist. Other rationing mechanisms must develop.

  1. Using demand and supply analysis, describe a specific situation that you have witnessed where a shortage occurred. Why were prices unable to adjust in this market?
  2. Combining what you learned from your readings as well as from the video clip, what other rationing functions could develop to alleviate that shortage?

Citation: Barnathan, M., Columbus, C., Radcliffe, M. (Producers), & Levant, B. (Director). (1996). Jingle all the way [Motion picture]. United States: Twentieth Century Fox.

Be sure to review the Discussion Guidelines in the Start Here menu before posting.

Post your initial response to the discussion question no later than Thursday 11:59 PM EST/EDT. You will not be able to see any of your classmates’ posts until you have posted your initial response.

If you are posting your initial response, click the Start a New Thread button.
If you are responding, click the Reply to Thread button for the thread you wish to respond to.

Respond to at least two of your classmates no later than Sunday 11:59 PM EST/EDT.