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lectur6-page14 - There are rating systems now for...

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14 14 Free Enterprise and Free Choice (An Extension of Property Rights) u The ultimate voter is the consumer, he/she votes with dollars, and decides which product will survive This reasoning is known as consumer sovereignty , where the ultimate purchaser of goods and services determines what is produced . A classic example of consumer sovereignty is illustrated by what happened when Coca Cola brought out the product “New Coke” and dropped the traditional Coca Cola beverage from the market. Folks tried the New Coke, but not many kept buying it. The consumer balked. As a result of losing money and market share to Pepsi, Coca Cola brought back the “Old Coke” in the form of “Coca Cola Classic” that you drink today. We hear people complaining all the time about the sex and violence on TV and in the movie theaters. Some have called for government to intervene.
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Unformatted text preview: There are rating systems now for television programming. Why is television and Hollywood putting all this violence and sex on the screen? Well, are we paying good money to watch it? I would conclude that television and movies contain what they do because we are consuming it at a very profitable level for the producers. We are telling them through our consumption that this is what we want to see. If we did not want to see this type of programming, then we would not be buying it, and the industries would quickly figure out that what they were producing was not profitable. Programming would then change. Should government assume that we do not know what the best basket of commodities for us to consume is, then step in to take care of us? Should government intervene and censor what television and Hollywood should produce?...
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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