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Text Commentary

Supply and Demand in "The Shawshank Redemption"
by Dirk Mateer `

Shawshank is one of my favorite films. It is a story of redemption and justice and how a single economic transaction made inside of the prison walls, leads to Andy's escape 18 years later. First, this is a nice illustration of how the black market works. Since Andy's demand is inelastic he pays a premium to get small rock pick used in rock collecting. He intends to use the pick to dig out. 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 elasticity, supply and demand and the risk premium associated with many activities.

This Commentary is related to the following Clips:
Supply and Demand in "The Shawshank Redemption" by Director: Frank Darabont, Producer: Niki Marvin (1994) Markets exist inside of prison.