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Price Elasticity of Demand in "Something Wall-Mart This Way Comes"
by Dirk Mateer `

Something Wall-Mart This Way Comes spoofs Wal-Mart for the closures it creates among small local businesses and the changes in consumer shopping behavior. The reason for both of these changes is the price elasticity of demand. Wal-Mart's lower prices drive consumers to its stores. If price didn't matter, smaller local shops with somewhat higher prices but more knowledgeable staff would be able to compete. But since price does matter, a new Wal-Mart is a big threat to existing stores. We see this in the ghost town shown in the clip. We also observe that price matters when it comes to shopping behavior since the Butter's dad cannot resist the 99 cent stickers and buys them even though he doesn't need them. Again, price matters.

This Commentary is related to the following Clips:
"Something Wall-Mart This Way Comes" - South Park by Created by Trey Parker and Matt Stone, Directed and Written by Trey Parker (2004) Wonderful spoof of Wal-Mart. (Clip provided by: Michael Jetter, Ph.D, Department of Economics, Universidad EAFIT)