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.

3 comments:

Nicole K said...
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Nicole K said...

I completely agree, Miranda. People use Facebook to communicate with their friends and see what their friends are doing. If Facebook started charging, people would just stop using Facebook and find one of their competition sites like Myspace. Their supply would quickly begin to dwindle because no one should have to pay to communicate with friends; it is just convenient to do so with a community site like Facebook. Facebook is a great site and it makes a lot of things much easier, but really any site could do what Facebook does. If Facebook were to charge, there would be a VERY negative incentive for being a member, and people would simply refer to one of the substitutes for it especially since it would have been a monthly charge. People would definitely not want to pay a monthly charge for a site that basically does what people could do anywhere, but Facebook just makes it more convenient and organized.

Nicole K

Selina R said...

I agree with both of you. Right now, Facebook is very popular and many people want an account. Therefore, the demand is very high. However, if a price is put on face book, less people will want to join or keep their account, including me. Facebook is used in order to keep up with your friends and stay in touch with friends you might not get to see every day, which is why it is used so frequently. Also, many people and friends already have a facebook, so it is an incentive to get other people to join, since everyone else already has one. I also agree with the statement that if facebook starts changing, people will stop using it, because, lately, facebook has been changing and less people have been using it. Some people have been substituting using Facebook with using Google Plus instead. Also, people can resort to communicating just with their phones. So yes, in the end, if Facebook starts charging people, the demand for a Facebook account will begin to decrease. So although Facebook is very convenient, as Nicole said, people will find another way to keep in touch without having to pay.