https://drive.google.com/file/d/1hweOOP0bQ-g9s3LZymfU2FlThF3AkANv/view?usp=sharing

( please watch this video )

In the 1990's movie "Pretty Woman," wealthy businessman Edward Lewis (played by Richard Gere) gets lost in Hollywood and stops to ask for directions. He meets Vivian Ward (Julia Roberts), a prostitute, and after spending the night together, he offers to pay her to be his escort for the week. Since Vivian needs to be appropriately dressed as his companion, she undergoes a dramatic makeover and they eventually fall in love.

The clip focuses on Edward and Vivian discussing the terms of their offer.

1) How does the video clip relate to the concepts of Consumer Surplus and Producer Surplus?

2) Identify a concept of consumer surplus. producer surplus, or efficiency of markets. There are many examples shown in the clip.

3) Use the information from the video to support an economic analysis or explain the concept you selected.

HINTS:

1) Clearly state the concept that you observed in the video.

2) Link the concept that you selected to a specific example in the clip.

3) Some concepts to consider are: who is the consumer and who is the producer, willingness to pay and willingness to accept, the consumer and/or producer surplus received by each party, the equilibrium price and gains from trade.

4) There are specific numerical examples that can be used from the clip along with applications of consumer and producer surplus.