Thursday, November 3, 2011

celebrity buisnesses

The famous snooki from jersey shore isn’t typically seen by her fans as a businesswoman, yet the article from CNN proves them all to be wrong.. Our consumers today use television and celebrities as a vital tool to help know what looks good and whats in style. Nicole took advantage of her famous TV publicity and created several business opportunities for herself in the microeconomics division. She used the demand of her idolizing character in jersey shore to create demand for places she went, things she wore, and how she conducted herself. Now she sells all of this to consumers/ fans and gains profit from it all. Now her personal appearances command a reported $20,000. Nicole exposes consumer sovereignty by using social media and technology to get feed back from her fans on what they like and prefer. Luckily Nicole is in a free enterprise system allowing her to truly produce what she likes because the fans like whatever she does. She doesn’t have this money all to herself since she didn’t get famous by herself in result producing externalities. All of Nicoles consumers demands are inelastic because everyone strives to be so much like snooki, so price doesn’t matter, producing even more total revenue for her businesses. Unfortunately once the TV show comes to an end I’m not sure how successful Nicole will be then. Once the demand for her decreases the demand for what she wears and all the rest of her products will go down. That’s the major downfall for celebrity businesses. Tre Vance

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