Oprah is Perfectly Inelastic!
November 17, 2009 § Leave a comment
The richest woman in America, best known for her multi-awarded talk show, Oprah: Her elasticity is something interesting to discuss about. As she is not only the richest black woman, her interesting TV shows have caught a variety of interest from many. Various TV programs she owns have been wide-spread and popular for the people of America; how is the elasticity of Oprah affected by supply and demand?
First of all, there is only one of Oprah. No substitutes, no nothingーjust one Oprah. That means, that the quantity supplied does not change, but what does, is the price. The amount of money which will make Oprah get on TV, or the amount of money to gain some profit from TV, qualifies for what the price is. Consequently, Oprah is perfectly inelastic! A like, this represents her inelasticity:
The curve here, is perpendicular to the asymptote of the graph. This shows how inelastic Oprah isーThere is one of Oprah, but according to her potential, she herself has the ability to bring ‘her’ price up or down. Therefore, Oprah is perfectly inelastic since there are no other substitutes for her, but the amount of money she is offered varies; as you see in the graph here, the price can lie between any point on that curve, up or down.