Cam’s dad, Merle, is fighting with Cam’s mom and they are considering a divorce. While there are utility gains from separating from partners, Merle believes he can do better than his current wife because he sees Jay and Gloria as role models. Gloria, however, paints a bleak picture of Merle’s future. Does Merle really have better options waiting out there or would he maximize his expected utility by staying with his current wife?
See more: cost benefit analysis, expectations, opportunity cost, tradeoffs, utility
Lily’s lost a tooth and it’s up to Cam to play the role of the tooth fairy. Perhaps it was late at night, or maybe too much wine, but the Tooth Fairy leaves Lily $100 for her first tooth. While both are in shock, Mitch points out that the going rate must be $5 tops and that the Tooth Fairy must have made a mistake. Delta Dental tracks tooth prices through the Tooth Fairy Poll, and the market rate in the United States is about $3.70.
See More: demand, equilibrium, expectations, market price, prices, supply
There’s a lot going on in this clip. The main focus is on Claire and Jay. Pritchett Closets (which Jay founded and Claire runs) has been selected to participate in the Expo Internationale du Closet! Both Claire and Jay are over the moon excited. But why? Participating in this event exposes them to an international market. They can expect a big increase in demand for their product. The second focus is on Manny. Manny has moved out but found that there are certain things about living at home that he really misses. This is something that a lot of people discover when they move out. These early lessons in personal finance can be tough!
See more: demand, expectations, international trade, personal finance, trade
Alex is hyper-aware of her future path into college and she knows playing an instrument will help her land in a prestigious college. Her parents had recommended she play the violin since it wasn’t as heavy, but Alex believes cellos are in demand in university orchestras, which should help her admission application. Part of the role of playing an instrument or sport (notice Alex’s lacrosse stick) is not necessarily that they are correlated with better students, but rather they serve as signal that students can maintain a rigorous academic load while also balancing extracurriculars.
See more: choices, college, demand, expectations, signaling, supply, tradeoffs