Microsoft purchases Skype for 8.5 billion

Microsoft's recent 8.5 billion acquisition of the Internet telecommunication giant Skype, shows Microsofts willingness to capitalize one the high demand that the public has for communication over the Internet. By making this deal Microsoft has acknowledged that their telecommunication technology is greatly inferior to that of their competitors Google and Apple, this will change soon though because as a result of his purchase of Skype, Microsoft will have access to Skype's superior telecommunication technology and Capitol. Over time Skypes technology will trickle down to many of windows products such as the Windows phone and the Xbox 360, demand for Windows phone 7 will also go up for a time because it will have superior video chat technology than the iPhone or Android phones. The acquisition of Skype could also help end the common misconception that it is less "hip" than google and Apple and that it is behind the curb in regards to video telecommunication technology. Sales of Microsoft product should also soar, because Microsofts products are already cheaper than their competitors products, the only reason Apple's products sold better was because they were of better quality and more high tech, and the majority of those thinking at the margin would rather pay up a bit more to get a better product, but now that Microsofts products will be more up to par, their sales and demand for their products will likely rise because of this. What do you think, do you think Microsoft's acquisition of Skype will have as big of an impact as many believe?


http://www.nytimes.com/2011/05/11/technology/11skype.html?_r=1

-Andrew Velvin, Cameron Casey, Will Noble

Demand of Houses Drop Along with their Prices

As the economy gets worse, people tend to save their money rather than spend it. When the economy goes into debt, the demand for high priced items is very low. Since the Lehman collapse, the demand for houses began to drop. In order for something to receive a higher demand upon it then the price must drop. This is what is happening to houses that are on the market. The government has spent their money in the past to help the housing market, however it did not help with the price and demand and money was waisted on this idea. People that receive home loans will never be able to pay off their home. They could have purchased their house when the economy was good, or at least better than it is now, and now since the prices of houses are dropping, their house could be doing the same. The debt that people are in and the low demand of houses on the market are bad for the economy and bad for businesses, such as real estate, trying to make money. However, the people that have saved most of their money can find a great deal on a home. They can buy a house for a price a lot cheaper then it originally was. The demand of people buying houses maybe low but it is beneficial to some individuals and family that have saved their money and are looking for a nice, cheap house to buy.

Bri Sharp, Catherine Gregory, Chris Kennard

The iPad 2

The iPad 2 will sell 1 million units faster than the 28 days it took the first-generation iPad to sell according to this article. The demand will eventually increase because the new tablet will be available in more stores, instead of just the Apple store. As the supply of a product increases the price will decrease because the producer will have more of the product to sell. The iPad 2 will sell at 236 U.S. retail stores and in more than 10,000 other stores, including AT&T and Verizon stores, as well as retailers such as: Target, Best Buy and Walmart in the United States. The supply for the iPad 2 will be much higher than the iPad 1 because Apple expects to be in 27 countries rather than 10 for the first iPad. Apple CEO Steve Jobs launched the iPad 2 on March 2^nd; one week after Verizon Wireless launched the Motorola Xoom Android. The iPad 2 is thinner, lighter and faster and includes dual cameras for video chat via Apple's FaceTime application.  Even though the price will remain the same, the quality of the product is much better and it’s still offered at the same price.  The better quality for a lesser price eliminates competition such as the Android xoom.

Easter egg woe for chocolate makers as costs rise and prices are slashed

Everyone expects Easter weekend to be a huge weekend for chocolate to bring in a huge profit. This Easter chocolate makers are feeling the pain of their favorite chocolate eggs and bunnies not being as popular. Because of the low demand the chocolate makers are forced to lower prices. Even popular favorites such as Cadbury's Creme Eggs are finding it hard to make a profit with the rising prices of sugar and cocoa. The price inflation of these items makes the cost of production higher and low demand causes the price to remain low. Many stores use the deals on these Easter favorites to draw people into their stores so they can make a profit with other products. Although the demand of these items is obviously higher this time of year the profits are still not comparing to previous years. The amount of independent chocolatiers is slowly decreasing as large companies take over the marketplace. Rising prices of necessary ingredients may just cause these independent chocolatiers more discouragement from continuing in their business. While the Easter bunny may be enjoying the low prices the manufacturers and sellers are finding it hard to make their usual profit.
http://www.guardian.co.uk/business/2011/apr/24/easter-egg-woes-for-chocolate-makers

The Wedding Dress, Bridesmaids' Dresses and Pages' Uniforms

The royal wedding was all that anyone has talked about for the past 2 months. One aspect of the wedding that was the most anticipated was Cate’s dress. It was the dream of any designer to get to make the first dress ever to be worn by the new princess. This is because the designer who is selected will be classified as the best of the best. Cate decided to wear a dress designed by Sarah Burton at Alexander McQueen. The demand for her as a designer will skyrocket because of Cate’s selection. Her beautiful design and craftsmanship will be showcased on a worldwide stage. The cost of the dress would not have been an issue because the advertisement alone would bring endless opportunities for the designer. Based on the principals of economics the price of dressed made by this designer will continue to go up as the demand goes up. The dress is the centerpiece of the wedding and will continue to be talked about by everyone. The fact that Cate chose to wear this dress shows that she approves of the quality and craftsmanship. This dress will also stimulate the market for “look alike” dresses and I can imagine that the wedding dress industry will benefit due to high demand.
http://www.officialroyalwedding2011.org/blog/2011/April/29/The-Wedding-Dress--Bridesmaids--Dresses-and-Pages--Uniforms

Will recent natural disasters in the south effect the economy of the whole country?

Will recent natural disasters in the south effect the economy of the whole country? In the long run will government continue to give money for these natural disasters on our home front? The recent tornadoes that swept in Alabama took out many lives and homes. In the article federal emergency management agency administrator Craig Fugate thinks its imperative to make the response time to disasters quicker. This might mean that we as a country need to be economically ready if another disaster shall strike.  A quicker response time will allow for more people to get back on their feet sooner but what if the disaster reoccurs in two days or two weeks after the “fixing” process has already started. That would result in thousands of dollars lost.  A benefit of a quick response besides the fact that things are indeed being fixed is that citizens feel like the government does care about them. And when citizens or voters think they are cared for people get votes. On top of fixing homes and other buildings the loss of life would play a big role on getting a state back on its feet, there is a loss of jobs and people to work in those jobs. When companies are destroyed they don’t just losses the four walls but they loose the materials necessary to run the store. If there were a big hurricane in Florida that wiped out the orange groves that would affect Florida’s ability to sell and produce there biggest ticket items and income for the state would go down. Is there a way for the government to be able to make that up and support states who go through a traumatic state in history? 

Whats more important more money or the luxury items?

The price of luxury items has continued to go up and up, while the value has not changed. Many people would rather spend their money on a starbucks coffee then saving it. In this article the author makes it clear that she would much rather look at coffee as an occasional item even though it is something she buys daily. A daily item like coffee is for most people is not the same as going out at buying a new watch, which would be considered an extra expense, and not something bought every day. When her husband recommended putting it in the family budget she found it unnecessary, and said she could cut back. Instead of reducing spending in other places like excess shopping, pampering, etc. Even when her husband bought her a complex coffee maker that had the ability to make her regular order she only used it on the weekends and for parties instead of everyday to cut down that extra expense. The American dream has been to make money and live prosperously. When people don’t take inconsideration to save money for the stuff they want people end up spending on credit. During the Great depression this took a massive toll on a lot of people and again in the rescission. When people get to confident with their money it leads to more credit and in the case of the author an excess of money going to coffee could take a toll on the family’s budget. A $4 coffee everyday could be almost $1,000 over a whole year. This money could be used for many other more valuable things, but it’s all a matter of what is more important luxury items or money in a bank.