Newman trades Kramer a helmet for a radar detector. Jerry thinks Kramer is getting ripped off; later Kramer tells Jerry that the radar detector didn't work!

Jerry's car is stolen, so he rents a car. The rental company doesn't give him the car he reserved; he gets a small economy car. They ask if he wants insurance, and he replies, "Yes, because I'm going to beat the hell out of this car."

While Jerry and Elaine are at a restaurant, a valet parking attendant with body odor leaves Jerry's car with a lingering smell. The external costs are large: the smell attaches itself to Jerry and Elaine, who have to resort to costly measures to cleanse themselves. Jerry attempts to recoup some of the damage by cleverly bargaining with the restaurant owner to cover the cost of cleaning the car. In the end, the cleaning is not enough, and Jerry leaves the car and keys in plain sight hoping it will be stolen, in which case the insurance company will bear the loss.

Stringer Bell learns about product elasticity and then explains it to the gangsters he is in business with.

Harold, a tax auditor, visits Miss Pascal at her store to audit her because she paid only 78% of her taxes for the year. She gives him a hard time and states that she intentionally did not pay taxes for spending that she does not support. Miss Pascal mentions some ways that the government spends taxes.