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					     Sara Odette Battikh


         SOB 5167


         ECON 002


          Fall 2009


      Misty Ann Stone


            4:40


“Confessions of a Shopaholic”


    Scarcity and Demand
                                The Demand for the Green Scarf


 Economy is a worldwide concept that can be applied along with different fields. By using

economic concepts people have the opportunity to explore through different ideas and take

the options that will leave them better off. People are always facing scarcity because not all

their wants can be satisfied. When scarcity is faced, customer’s demand is limited to the

available products. This situation is shown by the Law of Demand, which explains the

inverse relationship between price and quantity demanded. In this paper, it will be discussed

the economic concepts of scarcity and demand, and how they are related to our everyday’s

life. Showing that these terms are always influencing our current markets and rates of

consumptions. Let’s see how!


   Scarcity is the concept that embodies or gives us the idea that all the resources are limited.

It is an idea that has existed throughout all the times, and it will continue to exist. Scarcity is

not a shortage and it does not mean that a single person is poor; everyone is faced to this

situation, even the richest person in the world. When scarcity exists choices have to be made.

Furthermore, the ability of people to purchase a product cannot be satisfied, leading

consumers to limited options while demanding a good.


   The Law of Demand will show the amount of a specific good or service that all consumers

are willing to purchase at different prices; knowing that each person is facing scarcity. As

people know, the price of a product affects its demand or consumption. The law of demand

can be represented by the demand curve, showing the inverse relationship of price and

quantity demand. The lowest the price, the highest its demand and the amount of people

willing to buy a specific product, and vice-versa.


   As people know both of these concepts are always applied to our daily live. An example

of this situation can be shown in the movie “Confessions of Shopaholic,” in which the
protagonist Becky Bloomwood, a famous journalist known by “the girl in the green scarf”,

has acquired a huge debt due to her love for shopping. To pay for her debt she has gone

through many experiences from where she learned that people cannot have everything they

desire. The best way to describe both of these economic concepts is the scene 18, “the sale of

the century,” in which she decided to sell all her clothes in order to pay for her debt. When

the sale is over and there is only one product left, the green scarf, everyone becomes exited

and wants to have it. The green scarf is a unique icon in this movie because it was used by

Becky during her job interview and was her representation nationally. Products with this

value are always scarce, because not all the persons can have it, leading to situations in which

people have to compete to obtain it (1:30 hours in the movie). Therefore, how it will be

determined who will be “the new girl in the green scarf”?


   When products or services are scarce, different ways are used to determine who will

obtain it. In this movie (1:35 hours) the termed “auction” was introduced in order to make

people compete for the scarf. This act lead to the concept of demand, while each consumer

was offering higher amounts of money for the scarf, the number of persons willing to pay the

price was reducing. For example, when the auction begins the first person offered $50 and

there were 8 persons willing to buy it. But as the auction develops, higher prices were

introduced, and at the price of $300 there was only 1 person able to pay for it (See graph 1).

Giving up the concept that as higher the price of a product, less people will be able to buy it.


 Finally, we know that consumers are always facing scarcity because all wants cannot be

satisfied, leading people to make choices. Also, the quantity demanded for a product will be

based in the inverse relationship with its price. This report discussed both of these terms,

making us understand that both are unavoidable in live. “Confessions of a Shopaholic” makes

me understand that it is impossible for us to have everything we want basically because, first

it will lead to have high debts, and then because the fact that scarcity will always exist!

				
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posted:11/26/2011
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