The Shawshank Redemption

Media Type: Film Clips Topic: Supply & Demand

Click here to watch this clip.

Shawshank is one of my favorite films.  In this scene, a single economic transaction, the purchase of a rock hammer, leads to Andy's escape 18 years later.

This clip is a nice illustration of how the black market works. Since Andy's demand is inelastic he pays a premium to get the small rock pick used in rock collecting.  At the same time, getting caught with a rock pick is risky business, so the agreed to price is much higher than would be paid if the purchase was made outside of jail. Best to use when discussed with elasticity, supply and demand and the risk premium associated with many activities.

Available on iTunes Available on Amazon.com
Your Thoughts
Was this helpful to you?
5
(2 votes)
Tags
Related Content

What People are saying...

Ask Dirk Now!

Students, got an econ question?

Who's Dirk?
More on the man, himself. Meet Dirk
Econ Media Library
Check out multimedia tools, videos and more in our Media Library