Journal Topic 12: Pizza for Pesos?

In the video “Pizza for Pesos”, it talked about Pizza Patron accepting both pesos and US dollars. It raised some controversies. For example some said that this benefit the illegal immigration from Mexico because people believe by doing that it is catering to the illegal immigrant market and weakening American culture. This video eventually deals with utility, because when people buy things, they need to concern the benefit of buying it, whether buying pizza in pesos or American dollars increase their utility. This concept therefore deals with consumer preference. Consumers choose what benefit them the most. For illegal immigrants, they might think that buying using pesos is better because they don’t need to exchange money. As for Americans, they might choose to use US dollars. A change in the exchange rate between Mexican Pesos and US Dollars would definitely have affect on Pizza Patron’s business, because people prefer the cheaper money. Moreover, when the value of the money decreases and the other remain the same, people buy less. Therefore their budget line shifts inward. However, when the value of the money increases it goes the other way around. I believe that using pesos might increase the chance of illegal immigrant, because they can cross the border and buy food without even changing the money.