Sara Odette Battikh
Misty Ann Stone
“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!