Home Alone- EconMovies #18- Elasticity and Price Discrimination

Jacob Clifford introduces Econ Movies and analyzes the economics in 'Home Alone' and other Christmas classics. He discusses the commercialization of Christmas, the law of demand, and the differences between inelastic and elastic demand using toothbrushes and pizza as examples. Clifford explains why some products go on sale during Christmas and the problems with huge sales. He introduces price discrimination, using airlines and coupons as examples, and concludes with a montage of movie scenes.

What is a common theme in many Christmas movies according to the video?

• The magic of Santa Claus

• The commercialization of Christmas

• The importance of family

• The joy of giving

What happens to the quantity demanded when the price of a good with inelastic demand increases?

• It increases significantly

• It decreases slightly

• It decreases significantly

• It remains unchanged

Why might a company avoid having a huge sale on products with elastic demand?

• It could lead to a loss due to production costs

• It could attract too many customers

• It might increase their total revenue

• It might improve their brand image

What is price discrimination?

• Selling the same product to different people at different prices

• Selling different products at the same price

• Charging more for premium products

• Offering discounts to all customers

How do airlines determine which customers have inelastic demand?

• By the class of service they choose

• By the time of booking their tickets

• By their frequent flyer status

• By their destination

What is an example of price discrimination in everyday life?

• Fixed pricing for all products

• Seasonal sales

• Coupons and discounts

• Free samples

Why might a restaurant offer a senior discount?

• To promote new menu items

• To discourage young customers

• To attract more elderly customers

• To increase their overall prices