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Gains from Trade in "Just Go With It"
by Dirk Mateer `

Adam Sandler must negotiate with a young girl to convince her to pretend to be his daughter. They go back and forth on the wage and fringe benefits and finally settle on a $300 wage and he also pays her for a 3 week acting camp. After they shake, he turns to her and says I would've paid $500 and she responds I would done it for the experience! This is a perfect illustration of consumer surplus. Sandler's willingness to pay is $500 but his cost is only $300 so his surplus is $200. Likewise, the girl would have done it for the experience so the $300 she earns is entirely producer surplus. This is a cute scene that lasts less than one minute and a great way to create a memorable class moment to illustrate gains from trade.

This Commentary is related to the following Clips:
Gains from Trade in "Just Go With It" by Happy Madison Productions (2011) Adam Sandler must negotiate with a young girl to convince her to pretend to be his daughter.