The Bourne Identity

Media Type: Film Clips Topic: Elasticity

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Matt Damon is desperate to find a ride to Paris so he offers $10,000 to a stranger for a lift.  She is reluctant to take him up on his offer because no one pays $10k for a ride unless they are in trouble. Eventually she agrees to help him after he offers to pay her an additional $10k when they get there. The scene shows how trade can be beneficial to both parties. This is also an incredibly useful example of inelastic demand on the part of Matt Damon's character. Note also that the woman agrees because he provides a large enough incentive to compensate her for the risk involved. Wonderful example of how market transactions create both consumer and producer surplus.

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