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Economics in Pop Culture

ECON 2302.340 | Sydney Wood

The Office

The hilariously popular TV show, The Office, is full of economic concepts. From opportunity costs, to supply and demand, to market structures, the show has it all.

"Moroccan Christmas"

Season 5, Episode 11

"Moroccan Christmas"

Season 5, Episode 11

In this Christmas episode, Dwight comes to the office with as many Princess Unicorn dolls as he could find. After doing research, he learned that this doll was the most desired toy of the season. Dwight knows that demand is high and supply is low. As the owner of all of the dolls in the area, Dwight plans on making a large profit by selling the dolls at $200 each.

"Mo' money, mo' problems"

-Michael Scott

This situation that Dwight presents us with in the episode highlights a few different economic concepts among a few characters:

  • The Law of Supply and Demand
  • Opportunity Costs
  • Market Structure

#1

The first concept that we can see is The Law of Supply and Demand. This law defines the relationship between the supply of a resource (how much is available) and the demand of a resource (how much it is desired). How the two relate also greatly impact the price of the resource. For example, a low supply often times has a high demand and an increase in price. A large supply may or may not effect the demand or price. This is measured by elasticity.

Supply and Demand

Supply and Demand

Because the demand was so high for the Princess Unicorn doll, the limited supply of dolls decreased dramatically as Christmas approached, creating the perfect opportunity to increase prices to raise revenue. Dwight knew this and took advantage of the opportunity. This situation is completely inelastic, as the desperate parents were willing to pay even the ridiculous prices set by Dwight.

#2

The second concept presented is Opportunity Costs. This concept refers to the assessing of different options in order to obtain the most profit or benefit. On a basic level, this is like making a pros and cons list before making a decision and before making it, we look at what out-weighs the other.

Opportunity Costs

Opportunity Costs

Toby's daughter dreams of the Princess Unicorn doll. Toby would be the Christmas hero if he can get her this doll, and irritate the heck out of his ex-wife. Toby needs to get one of these dolls. But Darryll just bought the last one off of Dwight! So, Toby begs and begs Darryll, almost on the verge of tears, to sell him the doll for twice as much ($400). Darryll happily accepts Toby's offer, and Toby will now be the hero of Christmas.

This is a demonstration of the concept of Opportunity Costs because Toby was willing to do anything to get his hands on the last doll: pay a lot of money and lose a little bit of his dignity. But, he saw more value in seeing his daughter's joy (and ex-wife's scowl) on Christmas morning and sacrificed what he had for it.

#3

The last Economic concept that we can find in this scenario is Market Structures, and more specifically, a Monopoly. Monopolies have complete control over a resource or product. There is no other competition and there are no restrictions to the operation/prices set by the corporation since there is no one else to offer a comparison.

A Monopoly

A Monopoly

The situation that Dwight has placed himself in reflects that of a monopoly. By buying out all of the surrounding stores in the area of the Princess Unicorn doll, Dwight has total-control over the dolls. Dwight is not only demonstrating a monopoly, but also the potential (and common) characteristics of this kind of

market structure as he cons desperate parents out of their money. Monopolies can easily take advantage of and abuse its consumers who have no other choice but to buy from the monopoly.

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