The Parks Department has arranged a gala to raise money for a new park on the old Sullivan Lot. If they can’t raise the money, the lot will be sold to build another Paunch Burger. Nothing has gone their way while organizing the gala, and Tom hasn’t been able to find a caterer who was willing to provide free food, but then he had an idea. Paunch Burger operates in a monopolistically competitive market, which means the introduction of another fast-food business would lead to decreased demand for other fast-food companies. Tom is then able to arrange other fast food companies to provide food since they have more to lose if a new restaurant opens.
See more: monopolistic competition, imperfect competition, demand, substitutes, incentives
Every time Ann starts dating someone new, her preferences shift and she starts buying items that match the preferences of her partner. For Chris, she started buying a lot of workout equipment, for Andy it was a grunge phase, and for Tom it was purchasing a lot of unnecessary items. The demand for various items in a market can shift when consumer preferences change, and for Ann that occurs when she has a new boyfriend.
See more: demand, demand shifts, preferences, utility
Dr. Jamm bought a cooktop table from Benihana for $4,000 and thinks it is worth every penny. While Leslie and Chris may not place the same value on the table, Jamm’s subjective value is at least $4000.
See more: consumer surplus, demand, intrinsic value, luxury goods, preferences, status good, subjective value, value, willingness to buy
The Reasonablists are having their end-of-life party in the local park and Ron sees an opportunity to sell his high quality wooden flutes. Because the party springs up without notice, Ron sees a sudden spike in demand for his flutes. The leader of the Reasonabilists offers Ron a check because they don’t believe it will have any value the next day, but Ron has been selling them flutes for each of their previous going away parties.
See more: demand, demand shifts, elasticity, expectations, inelastic, M2, markets, medium of exchange, money, normal goods, preferences, store of value, transactions, unit of account
While Leslie Knope is running for city council, the Parks Department needs to get a lot of vans to help people get to the polls. A local van rental company realizes they have a monopoly over the market for these white vans and this recent surge in demand has given them the opportunity to capitalize.
See more: bargaining power, bidding war, demand, demand shifts, imperfect competition, market power, monopoly, rent seeking, supply