Friday, November 11, 2011

Starbucks to Start Juicin'

Starbucks has acquired a juice business that they plan to use to open up a new chain of health and wellness stores using juice as their keynote. The business they bought, Evolution Fresh Inc., was bought for $30 million. This one time fixed cost is the price they have to pay in hopes of beating out competition like McDonald's and such. This is because the demand for healthier food is so much higher that Starbucks is trying to take advantage. This is smart seeing as how not only is America demanding healthier foods but also the fact that Evolution squeezes real fruit and vegetables for their juices. Starbucks saw this as an advantage on the competition. These healthier juices will create incentives for people to return back to Starbucks stores because despite the fact that Starbucks hasn't released how many stores will open, Starbucks plans on not only opening independent stores but also carrying products at the local Starbucks's to increase marketing. To begin, Starbucks will only open these stores in the west coast where health is most popular within America, and they will go from there.

Black Friday Competition

Wal-Mart and Target are in a competition in regards to Black Friday this year. This year, Target decided to open their doors at midnight after Thanksgiving to kick off the insane deals because customers say they'd rather stay up late than wake up early. Wal-Mart, on the other hand, has decided to open at 10 P.M. on Thanksgiving day to start early. With confidence in the economy low and getting lower, these stores (not to disclude Best Buy, Macy's, and Kohl's) are trying to motivate people to shop. Wal-Mart is taking a lot of measures to encourage people to buy. As people's private savings keep going up, retailers are having trouble keeping up. An example is the fact that for one of the sales on Black Friday is Wal-Mart's selling of select DVD's for under $2. When someone can go buy a new DVD normally for around $20, Wal-Mart is either really desperate, or they're going to be some old movies that they just need to get rid of. Because of all the savings, stores that normally don't partake in Black Friday door-buster deals are going to be opening now as I mentioned above. In years past, Best Buy hasn't offered substantial deals along with Macy's, but now, they have to.

Tuesday, November 8, 2011

Will the Beliebers Stand by JB?

JB BABY DADDY...?! What?! Is the innocent 17 year old pop singer caught in a scandal or is he really the baby daddy of a 20 year old girl who claims he is? Mariah Yeater, 20, claims that Justin Beieber is the father of her son, who is now 3 months old. So what does this mean for Justin himself? He goes to court and proves her wrong? Maybe. We'll find out. But exactly what does this mean for his career. Are his fans as dedicated as they claim to be? With his new Christmas Album just released will the Beliebers help his music hit the top charts? Or will it be a loss of revenue for him because of this "scandal"? He may lose a lot of money and a lot of fans because of loss of respect if this scandal turns out to be true. But why did Mariah Yeater do this? If it isn't true she could go to jail for rape. Whatever it may this scandal is going to have major costs and benefits for JB himself.

More Facebook Friends than Friends in Reality

According to Matthew Brashears, a Cornell University sociologist, we have more friends on Facebook that we don't even confide in than we have in reality. The number of people, people trust has dropped within a quarter century, from 1985-2010. So he's stating that people are becoming less social and have maybe 5 friends that they are friends with on Facebook that they truly can trust. So then why do we have so many friends on Facebook? Is it to show off how many people we know? Is it just a way for people who've only met once to try to expand their friendships beyond that one meeting? Whatever it may be, why are the numbers of friends we truly socialize with dropping? About 2.03% of the people you're friends with on Facebook are people you actually will socialize with outside of school. In prior statistics it was a tad bit over 3%. Maybe Facebook is starting to become an alternative to socializing with people in real life. You can check in on Facebook, update your status, post picture, etc. So why do we even need to worry about conversing with our real friends? Because socializing and the bond between friends are dying. Relationships are being caused to change by this. 

Conniving President?

Herman Cain, you may have heard of him, he is running for President for this upcoming election in 2012. Up to this point he has had a strong running with good intellectual ideas about how to make our economy healthier. But Cain is a buisness man, he is CEO of his own pizza company. This raises some issues, especially with the accusations raised against him. Cain was accused of putting money, which were donations which were supposed to be used for his campaign, and he put them into his company's bank account. This raises some big questions. How do i know if he is serious about running for president or not? If he is, how can i trust him? How can i put the yhands of our economy in the hands of a theif? These are all good questions we need to ask ourselves. It is not right for him to lie to people, and say he is running for president because he wants to help change our nation, but then to steal from people in a sense goes against all ethics. I could never have a president who steals money from people. If he is runing for president for the right reasons and he does truely want to change our economy then he has good ideas and is a serious candidate for some. But i beleive that buisness men are always trying to get the uperhand on their competition, and this is just a stunt for him to try to get his buisness to the top. Buisness men are always trying to improve their buisness, why is he any different. In my case i beleive it would be one of the most unethical decisions our country could make to put Herman Cain in office just based on these simple facts. I could never trust any of his policies, or anything he says, because I would believe that they would be implimented to improve his buisness. Maybe if he resigned from CEO of his company and focused on other pursuits, then I could I take him and his policies more seriously. But for now i just see him as a conniving buisness man, trying to make more money.

Should College Athletes Get Paid?

There has always been a big controversy on whether or not student athlets should get paid or not! Although the students are in an educational enviroment and are in reality should be playing sports on the side; the reality is that students who are p-laying sports in college are there to the play that sport and try to go pro. The players take the easiest courses, just so that they can focus on their sports. The argument comes into play, when people say that they should get paid. The athletes are the faces of the school and draw huge revenue for the school. Most of them are taking cuts from sposnors and other people on the side, so why shouldn't they just get paid? People say that it is against moral values, and that it is suppose to be an educational enviroment. The same thing is said for high school athletes but noone thinks about paying them, people say. I beleive that college players should be paid a small sum of the revenue that they helped the school to gain. But if the schools do start to pay them, when will people start saying that high school players should get paid. All in all, the players are the main source of the revenue for the school, and they should get some kind of payoff for it; whether it be full rides for all athletes, or paying off their college debts when they finish colleges. Colleges need to see this fact and fix it quick or else the NCAA may take a turn for the worst.

Monday, November 7, 2011

Call Of Duty Modern Warfare 3 Breaking Records

Call Of Duty Modern Warfare 3 is one of the most anticipated video games ever set to release at midnight tonight. Modern Warfare 3 is a first person shooter produced by Infinity Ward who has created all of the other record breaking COD games. Call of Duty has set the record for the most pre-orders this year. Gamers pre-order Call of Duty so they don't delay the time it takes to get to there house. There is a shortage of Call of Duty games on release day because of such a high demand, so they reserve a copy for paying an extra 5$. Modern Warfare 2 last year sold 4.7 million copies world wide within 24 hours making it the most popular game ever, but this year they hope to top it. Modern Warfare 3 has also created an online membership called Call of Duty Elite. This is an online membership that you can buy for 50$ to get new map packs earlier and better features than regular gamers would get. This creates an incentive for impatient gamers. By creating this online membership Infinity Ward will produce a lot more money rather than just selling the game.

Nook Tablet vs. Kindle Fire, better alternative than iPad?

The new releases of the Nook Tablet and Kindle Fire may give the iPad a run for its money. The Nook Tablet and Kindle Fire are soon to be released tablets starting at 249$ and 199$, meanwhile the iPad starts at 499$. This creates an incentive for buyers to purchase one of these being only half of the price of the iPad. The Kindle has 8gb which is enough to store 80 apps, 800 songs, 10 movies, or 6,000 books, the Nook can store twice the amount of that and is only 50$ more. The Nook is larger and has a lot more features than the Kindle giving it the outmost advantage between the two, but the iPad and Nook are predicted to be head to head. The iPad has a high demand but cannot meet the wants of many people because of the price which can give the Nook a chance for more sales. The iPad is generated through Apple giving it more popularity and quality than other competing companies. The Nook is a cheaper alternative for buyers who want the same features as an iPad just maybe not as fast, precise, or as quality of an experience as the iPad would give them.

LSU Alabama Game Brings In Lots of Money

The LSU Alabama game this weekend was brought up as the "biggest game of the century" and definitely lived up to the hype. Being two of the best programs historically, the clash of these top ranked teams at #1 and #2 created a large incentive to watch the game due to the publicity behind it. LSU had the advantage being top ranked, but they had to travel down to Tuscaloosa creating another advantage for the #2 team, Alabama. Two teams from the SEC which is claimed as the best conference in football made it even a greater incentive to watch. As the game went on 6-6 in the fourth quarter the views even got greater than at the start of the game. At OT the views went to Alabama-LSU averaged 20 million viewers with a national household rating of 11.5, up 161 percent from last year's 4.4 when the teams played. The reason to why the game had more viewers this year was due to the incentive of the winner going to the BCS National Championship and the loser could not. Ticket sales for the game at Alabama were a lot more than any usual game. Due to the high demand and low supply of tickets they raised the price of the tickets up to double the average sale. This created more than double the amount of revenue that they would have generated for a normal game.

Bugatti as a Luxury Good

It is no secret that Bugatti cars are some of the most luxurious and exclusive cars in the world.  There are only a handful of Bugatti’s in the world today.  Out of the few Bugatti’s that are made, the Bugatti Veyron could be considered the most exclusive model made.  Since they came out in 2005, there have only been 300 Bugatti Veyron’s sold.  They are so exclusive because of their extremely high prices. In fact, the Bugatti Veyron is currently ranked first as the most expensive car in the world, selling at the price of 2.4 million dollars.  It is also currently ranked first as the fastest passenger vehicle in the world, reaching a top spead of 268 mph. The Bugatti Veyron was also named the car of the decade by the television show "Top Gear." These statistics make the Bugatti Veyron one of the best examples of a luxury good.  Because they are ranked as the most expensive car in the world, it gives it the title of a luxury good.  Bugatti’s and especially the Bugatti Veyron are specifically known for being the million dollar car.  The Bugatti’s never go on sale according to this dealer, so therefore it is another characteristic that makes the Bugatti a luxury good.  All of the characteristics that Bugatti’s are known for give them the reputation of a luxury good.   

Sunday, November 6, 2011

Decisions, Decisions..

The McRib hadn’t been nationally sold since 1994 unti last year. The McRib is usually sold by local franchises when they want to sell it, but this year, after such a high demand for it last year, the McRib is going national again. “The sandwich, which is dressed with onions, pickle slices and barbecue sauce, was introduced nationally in 1982.” Many people wanted the McRib and its “500 calories and 26 grams of fat” back, making Facebook groups such as “Bring Back the McRib!!!” and Trending Twitter Topics such as “Lucky me, the McRib is back”. There is such a high demand for the McRib that people are starting to kind of switch it up and make it their own with toppings like lettuce, tomato, and bacon. People are even beginning to get multiple McRibs stacked on top of each other. This brings up a question, is McDonalds going to do give in to the hype and make the McRib permanent and therefore bring the supply and demand closer to equilibrium? Or are they going to make sure that the McRib is going to stay in demand and keep people in suspense for when it is going to come back making the demand much higher than the supply. I think that McDonalds will keep people in suspense and therefore make people want it even more when it does eventually come back.

Friday, November 4, 2011

Aviation grappling with new taxes and rules: AAPA

Airline companies and tourism play a big role in recoverying the economy. But with new tax and regulation rules, these industries are struggling. Tourism is being effected by taxes in the way that to leave the United States you have to pay waiver taxes allowing you to leave, and also pay waiver taxes to enter the country upon your arrival. Andrew Herdman, the director general of the Association of Asia Pacific Airlines (AAPA) said,"Taxing the very people who you want to attract as visitors to your country is neither an effective welcome message nor a good way to develop the tourism industry," I agree with him completley. So not only is the economy not being recovered, tourism and many countreis could lose money also.

Thursday, November 3, 2011

In N Out's expansion to the East

Recently the famous burger restaurant In n Out has been expanding from its roots in California.  The most recent move In n Out has made when they put a meat production plant in the Dallas/ Fort Worth area.  Fallowing the production of the meat plant, In n Out is planing on opening a total of eight new stores in the Dallas area.  Although there is more to it than In n Out just trying to move to Dallas.  With the meat plant constructed in Dallas, it allows In n Out to expand to 13 other states.  The reason it took In N Out a long time to expand this far was because the fixed costs of shipping the meat this far east was very high.  They looked at their trade offs and realized that spending the money to put a new meat plant would be better for making profit.  The marginal revenue of building new stores would also be very high with their production of restaurants in Dallas.  With their expansion they are trying to create more supply of restaurants because the demand for In n Out is very high.  When they first opened in Dallas, there was lines that were four hour lines just for a burger.  With this high demand for their burgers, In n Out would be crazy not to continue expand and to raise the supply of their restaurants.  

Smaller Cheaper Tablets are Turning Heads

In today's economy, saving money while maintaining an enjoyable life style is a very hard goal to achieve. Today, more people than ever before are switching to cheaper tablets instead of buying an iPad. The cheapest version of the new iPad 2 is $499, the price of a 32 LCD TV and the price of two PC laptops. In the last year, the Android tablets grew from 2% to 27% of the total tablet market. The iPad and the Android tablets can be substitutes, but it can also be viewed as a luxury good to an inferior good. The abilities of the two are eerily similar and the only difference with the iPad is the brand name. The main obstacle for people new to Androids is the complexity of the operating system and the touch screens are not as advanced as Apple's. The amount of apps in the Google Android Market is rapidly increasing and the Android tablets sure have made a dent in the sales of the iPad2. This upcoming holiday season will be a good indicator of how big an effect a cheaper substitute has on another.

iPhone 4S shortages

The iPhone 4S has just recently come out and a lot of people pre-ordered their phones online.  Their were so many people that pre-ordered these phones worldwide that when it came out the phone was in excess demand.  While the phone was released worldwide America would get the more phones than the other countries. Although even though America had the most we are still suffering delays for some people who want the phone and same with the people in other countries.  These shortages of the phones are extremely unexpected and have cause people to become unhappy.  Apple should have known there would have been excess demand for their product and produces more of their good.  Maybe next time that apple releases a new good as big as the iPhone 4s they will have a bigger supply of the good.  

McDonald's Doing well in recession

We are in a time were people are worried about how much they spend.  People are cutting back and trying to spend as least as possible.  McDonald's low prices have created incentives for people to eat there.  People have been worried that the recession will continue and any time you can get a good deal people take it.  In the month of October sales rose 5.4 percent for the store.  With the economy down people have been more interested in buying at McDonald's.  The demand for McDonald's has risen and they have been making more money.  People have to weigh the trade offs and decide if they want to save money and eat unhealthy or eat healthy and spend more money.  Most people are choosing the cheaper way and not worrying about how they eat because it is cheap and it is saving them money so why worry about how they eat.  The recession is benefitting McDonald's and is bringing in great profit for them.   

Tuesday, November 1, 2011

NBA Lockout: For Some Cities, Enough is Enough.

Everyone knows that tonight was supposed to be one of the most historic in Dallas Mavericks history, the opening game against the Chicago Bulls, and the raising of the banner as 2011 NBA Champions. Unfortunately, as the lockout continues and only furthers our hopes for a new season, it seems that the greedy just get greedier. Fortunately for the city of Dallas, a large amount of revenue has not been lost because of our other major professional sports teams bringing in money, but for Memphis, Oklahoma City, Orlando, Portland, Sacramento, San Antonio, and Utah, there is much to lose with basketball being their own professional sport. Although demand for a season is clearly at an all-time high, revenue is being lost daily from the lockout. Data gathered states that San Antonio spurs have a $95 million impact on the economy, as well as the Memphis Grizzlies with a $223 million on their economy. Along with revenue loss, their is a high job loss as well. Even worse, four out of the seven NBA franchise-only cities have an unemployment rate above the national average. Although most NBA related jobs are part-time, many are lost, for example in Memphis about 1,500 jobs will be lost this season.. For Orlando, the site of the 2012 All Star Game, it's much more than just the loss from the season. We all remember how much money Dallas made when we held the All Star game here, and Orlando is predicted to lose as much as $80 million - $100 million in economic impact. Needless to say, we are all ready for some basketball, and need the owners to work things out for the sake of the game, not for money.

Monday, October 31, 2011

Bieber Fever is Back

Justin Bieber has been in a bit of a funk. Clearly he is still making muuuch more than a seventeen year old should, but he was huge for a while and now has started kind of mellowing out. To keep his demand up, he not only came out with a Christmas album, he had artists with many different fan bases and had them featured on the album as well, such as, Boys II Men, Usher, Mariah Carey, The Band Perry, and Busta Rhymes. He knew that if he were to increase his supply, he could make more money especially when he basically forced the album to become extremely successful with so many different types of fans he widened the potential realm of the consumers’ self interest. With R&B, Hip Hop, Pop, and so many other genres, basically everyone’s self interest is covered and everyone is able to find something that they like. Also, he released one of the songs from the album earlier than all of the others, giving the consumers a little taste of what was to come. Justin is back and I’m sure he’s gonna be bigger than ever.

Midnight Opening of Black Friday!

Starting this upcoming holiday season, Target and Macy's have decided to pick up a new trend: opening their stores to consumers at midnight on Black Friday. This incentive will have consumers filled up outside the stores waiting to be let in to start their early holiday shopping. Prices this season are also very low: "Macy's Black Friday deals include 50% off Sharper Image iPhone/iPod docking stations, $19.99 rampage boots, a free digital video camera with any $65 fragrance purchase (while supplies last) and $79.99 for a DKNY down coat." These prices and early Black Friday opening give consumers an incentive to get their holiday shopping done before Christmas sneaks up on them. On the other hand, some consumers will completely disregard the early opening. Some will instead shop closer to the holiday based on their trade offs: getting stomped by feverishly frantic shoppers in the early morning or peacefully shopping on their own and maybe having to pay just a little more for their items by waiting. Another incentive these stores are providing is extending their store hours on Christmas Eve. This holiday season will sure be a busy one full of shopping and busy malls!

Government Sues to Block AT&T/T-Mobile Merger

The United States Government sued to stop the AT&T/T-Mobile merger. The government fears that if these two very marketable cellular mobile companies team up together it will cease the competition, therefore raising prices in consumer products. Through the concept of law of demand, this exact situation leads our economy to plummet because it shows that as prices raise, the consumers buy less of the product. This could cause excess supply, leaving the merged companies in disequilibrium. With the point of equilibrium resting above the original balanced point, it will make the company lose money to pay for all the supplies needed in order to sell these products in the first place. With the loss of competition in our free market economic system, it lowers both companies total revenues to greatly decrease in profits which could higher the possibility of these two successful companies to go out of business. Since technology has defined the line of everyone's basic necessity in our everyday lives, the companies to stay apart would be the best for the economy as the Real Gross Domestic Product (GDP) rises every quarter.

Out of Pocket Change

No disposable income? Blame it on the economy. A survey done on Sunday reveals that one-in-three North Americans say that they have no extra spending money. In our current economic situation, times are tough and having a shortage of cash on hand is becoming frequent. The survey also states that consumers' biggest concern is economic outlook surpassing their concern of rising inflation and job security. This concern isn't just local either, India and other nations are suffering the same effects of the recession. Consumer confidence is also extremely low: "Consumer morale in the euro zone remained especially weak, notably in France, as the region’s debt crisis deepened during the summer." Without consumer confidence, people are less likely to be doling out any extra spending cash. 64% of consumers feel that in our current recession, it is not a good time to be spending... nor do some of them even have the ability to do so. In these tough times, it is best to try and save all that you can in order to keep your head above water!

7 Billion and Counting: Should the world adopt a 'one-child' policy?

As this Yahoo! News article states, "the world population has hit a whopping 7 billion, and researchers suggest it could reach 10 billion within the next century." When the everyday person hears of this, one would probably tend to believe our world to be vastly expanding and that it is a great thing. On the other hand, economists may think quite differently of this widespread opinion. Why though? As leading indicators show, the latest GDP growth rate has risen, slowly but surely. It's quite possible, though, that with the larger the population becomes, the more money the U.S. will need to keep the economy in somewhat good hands. This could be foreshadowing a difficult contraction in the growing economy. A future policy discussed in the article, as known to be the 'one-child per family' policy, which I believe to be immensely controversial, says could balance out the growing economy and avoid future repeats of the Great Depression.

Sunday, October 30, 2011

Why Go to Party City?

Party City is known for their wide variety of costumes and decorations. There are currently 700 stores nationwide. During Halloween, the demand for costumes is very high. Prices range from $5 in the clearance section of kids all the way to $60 for a woman’s costumes. That’s not even including the accessories that are necessary for the costume you buy. To me, this price range seems a bit outrageous. However, people still insist on buying a brand new costume for these prices. I don’t see why is it necessary to buy a costume that you will most likely wear once in your life. Why spend these outrageous prices when you can make a fun costume right at your home, using things you can find around the house. Instead of buying a costume at Party City, you can substitute it for a nice homemade costume and save at least half your money. For instance, all you need is some old T-shirts, fabric glue, and a few hours to make an easy owl costume. You could also make a mask for your costume. The mask would only need a couple pieces of construction paper and something to tie it to go around your head. Another creative idea would be a Rubik’s cube. All you need is just a box and some construction paper. Or you could make yourself a superhero! All you need is to wear tights and a graphic felt cape. You can be as creative as you want! Although these might not be your typical and fantastic costumes, these costumes would be fun, creative, unique, and needless to say save you some money.

3 Top Jobs

For some people a job is just a way to earn a living and something that has to be done. Most of the time people dread going to work. However, some people look forward going to work. A few of these people would be Alisa Hensley, Steph Davis, and Dylan Lauren. Alisa Hensley is a stunt woman. Alisa Hensley falls, crashes, dives, rides, kicks and fights as part of her job. Steph Davis is a rock climber. On a typical day, Steph, will climb up a hundred foot high rock, without any ropes, and then parachute down back to the ground. Although both of these jobs can seem very entertaining and fun, is it really worth the risk? There are so many things that could go wrong. It is possible that either of these two women could break an arm, a leg, or a rib. Or worse, it is a possiblity either could become paralyzed or maybe even result in death. These two women should think at the margin. They should think of the pros and cons of these jobs and see if it is worth the risk. On the other hand, Dylan Lauren has a completely different type of job. Dylan Lauren owns a candy shop, Dylan’s Candy Bar. This candy emporium offers more than just candy. It offers clothing, accessories, souvenirs, and even house wares. Although business is booming for Dylan’s Candy Bar right now, will it always? Candy is a very popular item that almost everyone enjoys. However, it is a known fact, that candy isn’t the best thing to eat all the time. So will people eventually stop buying as much candy? Or will people get tired of always going to the same candy store? These are all risks that Dylan Lauren has to think about. Dylan Lauren just always has to make sure the total revenue from the goods and services the factory produces is greater than the cost of keeping it open.

Redbox Price Increase and the Possible Consequences

Earlier in the month, Netflix increased their rates by up to 60% and split up their DVD and streaming services into two entities which cause 800,000 subscribers, including myself, to drop the service altogether. Netflix believed that the increase in demand for their product warranted an increase in price. However, the price increase was too high. Starting on Halloween, Redbox will increase their price due to their recent successes. Unlike Netflix, Redbox tested their new price in many different locations and only saw an expected drop-off in demand I believe that Redbox increased their price perfectly according to the law of price and demand while Netflix needs to hire some new economists.

Thursday, October 27, 2011

Business Side of paying collegiate athletes

Recently in college sports, especially football, there have been many cases of collegiate players being paid.  In this article it talks about how some of the biggest power houses of college football that are being punished for their involvement of paying players.  It has mainly been the boosters and alumni that are responsible for paying these players.  This aspect brings into question what are the business aspects of paying players.  In my opinion, these universities and boosters are paying these players to increase the demand in their football teams. The amount of revenue that these high ranking teams bring in for playing in big time bowl games and primetime games is enormous. An example would be Texas in the 2009 fiesta bowl; for their win they received around 3 million dollars.   Also a high powered football team creates a great incentive for students to attend the school; TCU is a prime example of this. When their football team started doing well, and became ranked, their applications grew about 40 %.  All of these factors create great revenue for the school, and the easiest way for some school to get these high powered teams is to bring in players by paying them.  I'm not saying that paying collegiate athletes is the right thing to do, but for some schools it may be the solution to bring in huge amounts of total revenue.

Coca Cola Goes White

In 125 years, the Coke can has never changed colors. Sure, during the SuperBowl, one will see footballs on one side, but there is always the red can with the white insignia. For this year's holiday season, however, Coca Cola cans are going white for the polar bears. I for one can look back fondly on the winter Coke commercials with the polar bears from when I was a child, and now they are trying to save the beloved creature. These white cans give consumers more incentive to buy this holiday season, and demand is expected to rise with these white cans. Also, the company is teaming up with World Wildlife Fund (WWF) in this endeavor, and is supplying 4.1 billion white Coca Cola cans. Along with this, Coke is donating $2 million and giving consumers incentive to donate by matching all consumer donations up to $1 million, all to the World Wildlife Fund. According to Carter Roberts, WWF's CEO and founder, " Coke has made a kind of foundational commitment that has never before been seen in our history. They're taking their biggest promotional season and dedicating it to this cause." Clearly, Coke is using their always creative and popular marketing skills to a good cause. This is beginning to be desperately needed, as the WWF is attempting to move the polar bears to areas of the Arctic which are less vulnerable to global warming, giving the speicies time to adapt. All this work effort will take a lot of research, which couldn't be accomplished without Coke's generous donation this holiday season. So, consumers, get thirsty and get ready to propose a toast to the polar bears with your white Coke cans.

Michal Jackson-Highest Earning Dead Celebrity

Michael Jackson was recently named the highest earning dead celebrity by So far he has earned this title twice since his death in 2009. It is estimated that Michael Jackson earned about $170 million last year, making him not only the highest earning dead celebrity, but also the second highest earning pop music act this year. Since his sudden death and because of all of the media attention regarding his death, album and memorabilia sales have actually increased. Cirque de Soleil actually created a show called "Immortal" that celebrates Michael Jackson's life and music. Recently, a memorial concert was held for Michael Jackson in Cardiff, Wales, and tens of thousands of fans showed up. When a celebrity dies, the demand for their music, tv shows, etc. goes up because the supply has been completely cut off. For instance, in a few years, a Michael Jackson autograph will probably be worth way more money now than it would have been ten years ago. Because Michael Jackson is no longer around to sign autographs, no more can or will be produced, so there will not be enough to match the demand and create equilibrium. This is just one example of the way the death of a celebrity can affect the amount of money spent on the celebrity's product.

Wednesday, October 26, 2011

Durable goods demand shows economy strengthening

With the fourth quarter coming up, the demand for long
lasting items has significantly increased, giving the economy solid momentum
for going into the fourth quarter. There was also data that showed an increase
in economic activity due to the amount of homes sold and mortgages paid off in
the previous month. This past month showed an economic increase that was larger
than any increase in the past 5 months. The Commerce Department said “durable
goods orders excluding transportation rose 1.7 percent after falling by a
revised 0.4 percent in August. Economists had expected only a 0.4 percent
increase after a previously reported 0.1 percent dip. But a drop in demand for
transportation equipment as bookings for motor vehicles and civilian aircraft
declined pulled down overall orders by 0.8 percent. Overall the increase in
demand for more durable goods has shown strengthening in our economy.

Monday, October 24, 2011

Misleading Trailer for Paranormal Activity 3

We’ve all seen the Trailers for the Paranormal Activity movies, but oddly enough the viewers were disappointed to find that the scenes from the trailer didn’t make it on to the big screen. The scene of the two girls playing Bloody Mary in the bathroom was on one of the first trailers that came out for this movie, but it wasn’t on the screen. This happened with four other scenes that were in the trailers, but did not seem to make it to the final cuts of the film. So why did the director put these scenes from the film on the trailer only to lead to disappointment for the fans. Even though I do not watch scary movies, those 5 scenes that didn’t make it to the big screen, but made it to the trailer of the movie, made me want to go watch the movie. Did the director feel that he needed to do this as an incentive for the film or was it because the director sent out the trailers before he ACTUALLY decided his final cut? Either way, he led fans into disappointment because they were left pondering on what led up to those scenes and what those scenes led up to.

Friday, October 21, 2011

Hiding From the Goverment

Glen Morissette, a 42 year old man, lives on only 11,000 dollars a year. How does he do this? Well, he lives in his R.V full time which requires him to pay no house or apartment payments, car payments, electrical and other types of bills, and so on. So what does this mean for our economy, if this is the direction that people are now taking? This could be a devastating blow to our economy if more and more people keep deciding to live like this. These people fly under the radar not paying taxes, and other payments, that the government uses to help the citizens and wealth of our nation; our economy. People have replied to the post saying,” That’s nothing I live on 8,000 dollars a year.” This lifestyle seems it is slowly rising in population. If we let this happen it could quite possibly lead to another depression. The government, to dispel more people from living this type of lifestyle to help insure the safety of our nation’s wealth, should develop a tax, which would be a high tax for people who live in R.V’s therefore not helping out the government economy. But this also raises trouble, not everyone who live in RV’s have the option to live in it or not. This means that problem has to be taken to the source, the RV dealers. Some law has to be introduced for the RV Dealers to make them discriminate against who buys their product for in essence hiding from the government.

Thursday, October 20, 2011

Jay-Z 101: Inside The Georgetown Classroom

In a recent attempt for a teacher at Georgetown to get students to sign up for his classes, he introduces a new class, Sociology of Hip-Hop: Jay-Z. His normal classes usually ranged from about 20-30 people. After introducing this class, his class size grew seven times what it had previously been. In economic terms, Jay-Z is an incentive. Because Jay-Z is subject of class and more people sign up, there is more of an incentive to sign up for the class.

Daniel K.

Monday, October 17, 2011

Facebook Rumors: Charging Money to use it?

Lately, there have been lots of rumors circulating that Facebook is going to start charging $7.00 monthly for facebook users to create and be active with their accounts. Though the rumors are not true, why was it started in the first place? These rumors can simply be defined as supply and demand, a commonly known concept in economics. When Facebook is free, the demand for creating an account is very high therefore requiring more and more supply, like computer storage chips and such. However, when Facebook will require monthly payments the supply will be larger but the demand to create a facebook will lower simply because Facebook is only to communicate with others and have fun with sharing photos and such.

Sunday, October 16, 2011

Louis Vuitton Sales?

A luxury good is a good that does not apply to the law of demand. For "normal" goods, as the price goes down, the demand goes up. For luxury goods, the price never goes down, because the supplier believes that if it were to ever go down, the demand would go down as well. This is just a theory though, because the supplier wouldn't dare test it in fear of losing demand. Louis Vuitton bags are luxury goods, and according to this website, Louis Vuitton bags never go on sale. In fact, this author believes that "if these luxury, designer handbags were too cheap it would not appeal to them and they would place a lower value on these items.", them being the buyers. People who have these expensive luxury handbags believe that having these bags makes them more important. When people see others with this bag they immediately know that they have money and that they can buy something like it for themselves. Even if it isn't the best looking bag, it is still a recognizable status symbol. According to this article, "Wealthy people for the most part enjoy telling others how much they've spent on luxury items because it makes them feel good, important and rich." Even in this recession, Louis Vuitton bags stay at the same price, and they will as long as some people can still afford to buy them.

Beamer, Benz, or Bently... how bout neither?

As many of us teenagers know, Beamers, Mercedes Benz, and Bently's are the hottest cars on the planet earth. These luxury goods are the status symbol of our favorite rappers and celebrities in the 21st century. People like Tom Cruise, Rick Ross, Lil Wayne, and many more show off their luxury cars regularly, causing a "demand" amongst young kids all over the world. I put quotes around "demand" because it really is not a demand that kids have... its a fairy tale and a dream. Demand is something people have the ability to purchase with their current wealth, which very few have. Therefore, Beamers, Mercedes Benz, and Bently's will never be in demand with young people. Less than 3 percent of the world can afford such luxury items. This may have you thinking, if only three percent of people can buy these goods, how do they stay on the market and make any money? The answer is simple. Luxury goods always stay above the market, when I say this, I mean that supply and demand of these more expensive items are above the regularly priced car lines. For example, a Ford Focus is a middle class commonly bought car. This opens up a much larger economic class who can afford to purchase this car, causing the supply to fluctuate depending on the demand. This is not the case for luxury goods, which are perfectly inelastic because as opposed to the supply being the manipulated variable, demand is the manipulated variable for luxury goods. This is the reason that people are on lists just to get the opportunity to purchase some of the most luxurious Beamers, Benz, and Bently's.

Friday, October 7, 2011

Facebook Makes Extreme Changes

Facebook has recently changed the way their site works entirely. Now that they have to compete with sites such as Twitter and Google plus, they need to constantly update their site to keep people interested. They completely changed the way the privacy settings work. Now, people can choose who they want to share what with, which will probably cause people to gravitate to Facebook instead of other sites, because it is in the consumer's own self interest to control who sees what they do. However, some changes like the timeline are looked down upon by some customers. Some people don't want to see everything their friends are doing at the exact moment they are doing it. If Facebook would make getting rid of the timeline an option for customers, more people might want to use Facebook. Facebook makes changes all the time to keep up with the competition in the social networking industry, however, this time they may have gone too far for some of the technologically challenged people out there.

Monday, October 3, 2011

Sports Fans Are to Blame for High Salaries of Athletes

Many times the conversation has come up about the ridiculous amount of money the New York Yankees pay 3rd baseman, Alex Rodriguez. However, what fans do not realize is that they are the ones who contribute to his enormous salary. It's not necessarily their money, but because of fans passion for the game and willingness to pay more to see and watch baseball. Sports are businesses and they are high factors of production in our market economy. Due to consumer sovereignty, consumers get what they pay for and sports bring in a lot of revenue from tickets, television deals, and memorabilia. Players salaries do tend to be looked as a matter of societal importance rather than the worth of that product to a business.

Sunday, October 2, 2011

Rise of Dental Care

The steady rise of the cost of dental care has affected the majority of Americans. Some Americans without dental insurance haven't been to the dentist in 3 years while surgeons recommended twice a year visits. Statistics show that 77% of those without dental coverage have delayed regular dental care due to the cost. This has become a major issue because lack of oral care has been linked to diabetes, heart disease, and stroke. With as much as it costs to go to the dentist nowadays, some people are simply skipping out on their suggested biannual check-ups. As with any service, companies are inclined to provide an incentive to choosing their product. For example, has "pre-negotiated rates that is says are 20% to 60% lower than typical prices, says Winebaum." This is a glint of hope for customers who are looking for the best priced services in the economy today.

-Danielle W.

Thursday, September 29, 2011

The Jersey Shore

Everyone knows of the Jersey Shore's fist pumping, binge drinking, and Snooki - all the negative steryotypes brought upon by the hit reality show. It may seem like all these negative implications would lead to a downhill apeal for real estate in the state of New Jearsy, however that is not the case. According to recent polls and amounts of houses sold recently since the show started, the numbers haven't decreased, showing an inelastic demand for the Jersey lifestyle. As the number of seasons increase, the interest in housing at the shore have stayed at a steady pace, not dropping or rising.

Bank of America to Add $5 Fee to Debit Card Users

Recently, Bank of America has announced that they are adding a $5 fee to those who use their debit card for purchases. Other banks have stated that they will be adding a debit card fee similar, but this particular announcement has more impact because BOA is the largest U.S. bank by deposits. Debit card usage has started to rise in recent years, 2/3 of customers saying that they use debit cards more than credit. The company hopes this will give customers incentive to switch to more frequent credit card usage. Many will have to consider a trade-off between dealing with the $5 fee with all debit usage, or dealing with interest fees on credit card bills, along with the possibility of credit card debt. This also becomes an issue for many families with teenagers, whose parents give them a debit card as an easy way to pay for gas and other consumer goods, without another credit card bill at the end of the month. 66% of customers have said that if a $5 fee is implimented, they will find another way to pay.

Wednesday, September 28, 2011

Arsenal Deciding to Spend Money on New Players

In the transfer window Arsenal picked up nine total players.  Some of which were very pricy for them to acquire.  We are in a time where we need to be watching money so Arsenal really had to weigh the trade offs of paying for certain players or not.  Although after starting out with one win, one tie, and three losses they were forced to reconsider what they should do.  The trade offs were to stick with what they had and risk being relegated at the end of the year or put their money to good use and try to make the team better.  So acquiring people like Gervinho, Park Chu Young, Andre Santos, Per Mertesacker, and Mikel Areta became a need because Arsenal did not have a lot of depth in certain positions.  Arsenal has gotten some marginal benefit from all of this because since these transfers Arsenal is doing very well in the Champions League tournament and in league play. Hopefully Arsenal can get back to the top of the table with these transfers after a rocky start.

-Hunter Prater

Incredibly Priced Camaro ZL1

The first Chevrolet Camaro ZL1 went on the market for $250,000! Rick Hendricks, owner of Hendricks Motorsports and chairman of the Hendricks Automotive Group, bought the luxurious car for $250,000. He'll have to gather up the money now. Although, he'll have to wait fot his precious Camaro ZL1 until the beginning of 2012. However, the wait should be worth it, considering the ZL1 Hendricks will recieve will be the only one produced with Carbon Flash Metallic exterior. It will be the 69th ZL1 to be sold, of which only 69 were produced. The Camaro ZL1's 6.2-liter supercharged V-8 will make a jaw-dropping 580 horsepower and 556lb-ft of torque. It is safe to say that the Camaro ZL1 would be considered and inferior good. The special thing about this car, besides the advancements, would be the level of demand. Since the demand is low, due to the price being incredibly high, it makes this car that much more valuablt. Therefore, if more people could afford the Camaro ZL1 or the price was lower, it would decrease the value of the car, making it less desirable. It would be just like all the other cars.

Friday, September 23, 2011

Kobe Bryant's Incentive to Play Overseas

Kobe Bryant has recently been thinking of going overseas to play basketball for the Italian team, Virtus Bologna. Kobe's incentive to head over and play is substantial. He has been offered an incredible amount of $6.7 million dollars to play for the team, which could be broken down into a game-by-game type of payment. This means he could leave and come back at any time should the lockout end. This gives him the marginal benefit regardless of his decision. However, there would be some cost as well. If he decided to leave, he would either have to leave his family for a little bit or bring them with him. If he just leaves them, he would have the cost of going one more game each time but being away from his family that much longer. Also, he would have to look at his opportunity costs. A lot of last season he suffered from pain in his knee and had to have it drained numerous times to prevent it from keeping him out. He could easily take the opportunity at hand to take some time off from basketball and rest up. It isn't like he doesn't have to money in his bank account to support his family anyway. Personally, I believe that he shouldn't go overseas. If he stays here, he can stay with his family, take well-deserved time off, as well as keep his title as a lifer for the Lakers. For a person like Kobe, that extra money he would gain by playing overseas is pointless when weighing the missed opportunities he would miss out on, especially considering what he would earn in Italy would only be a quarter of what he would earn this year in the NBA.