Hudsucker Proxy Film Analysis

922 Words 4 Pages
Economic Analysis of “The Hudsucker Proxy”

Economics I

Submitted to: Professor S.P. Misra

Submitted by:
Aishwarya Birla
1st Year, 1st Semester,
B.A. LL.B. (Hons.),
NALSAR University of Law.

National Academy of Legal Studies and Research University of Law,

1. Introduction 1
2. Plot Summary 2
3. Economic Concepts 3
3.1 Consumer’s perspective- Demand 3
3.2 Producer’s behaviour- Supply 8
3.3 Market structure-Monopoly 12
3.4 Insider trading 13
4. Conclusion 15
5. Bibliography 17

“The Hudsucker Proxy” is a 1994 film which has been analysed for the purpose of this Economics film review. While this comedy film failed at the box office, it clearly illustrates
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Barnes is to be proxy, manipulated by the board of directors to devalue the stocks of the company. As, according to company by-laws, all stocks held by the president must be available for sale to public. Hudsucker stock devaluation would ensure that the board would have the capacity to buy at least 51% of the stock, retaining control. Barnes is promoted from the mailroom to the president as he is seen to be a simpleton. He however uses his position to his own advantage and approves mass-production of his own invention- the Hula Hoop. While demand is low in the beginning, it gains popularity and profits soar, further raising stock value. The movie ends with a blue letter revealing that Hudsucker’s immediate successor, Barnes, would get his shares. This facilitates several other inventions, like the …show more content…
Also, this demand is inelastic as it shows less than proportionate change in quantity demanded to rise in price. VARIATIONS IN DEMAND (Expansion and Contraction) CHANGES IN DEMAND (Increase and Decrease)
• Law of Demand
Given by Sir Alfred Marshall in “Principles of Economics” (first published: 1890). “The greater the amount to be sold, the smaller must be the price at which it is offered in order that it may find purchasers; or, in other words, the amount demanded increases with a fall in price, and diminishes with a rise in price.” Thus, other things being equal , price and demand are inversely related.
The Law is applied in the movie where several of people want limited number of jobs. This means that employers have several prospective employees, leading to low wages. However, some exceptions to the Law exist-
1) Giffen goods/ inferior goods
These goods are inferior goods that consumers demand more with a rise in price and vice versa, violating the Law. As with a fall in price, the real income of the consumer increases and the excess is shifted to the consumption of normal

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