Sneaker World Assignment
The sneaker world is one of the biggest growing markets in the United States. The resale value of most limited edition sneakers can range in the thousands. This new market poses some interesting macroeconomic issues. This is assignment is designed to see if you can apply the theories we discussed in class to this new market.
Due date: February 28, 2024 11:59 pm (NO late assignments will be accepted)
Paper length 3 pages (not including cover page and reference page)
Paper MUST BE in MLA format and Essay Format
You must cite any information you get from another source in the MLA format.
Background on Subject:
Social Media and Resellers
When a celebrity backs a line of limited-edition sneakers, consumers want them at any cost. Social media helps to fuel their desires. Private collectors generate buzz by posting pictures of the latest sneakers on social media. The resale market also fuels the demand for sneakers. Resellers typically wait in line outside brick-and-mortar stores for limited editions, so they can resell them online at a profit. Avid sneaker fans are often willing to pay a significant markup for popular designs. For instance, soon after retailers sold out of the limited-edition Yeezy Boost sneakers at $315, enthusiasts paid up to $1,000 for the sneakers on eBay. Social media trends and the impact of resellers indicate that sneaker companies can maximize their profits by manufacturing sneaker quantities at levels just below demand.
Read more: The Economics behind Sneakers (NKE, ADDYY) | Investopedia http://www.investopedia.com/articles/investing/030716/economics-behind-sneakers-nke-addyy.asp#ixzz4vzFPk4jR
Reference Material: Watch Youtube video BigSneakerhead com brings you the Netflix “SNEAKERHEADZ” Documentary
Additional Information: https://stockx.com/news/sneaker-resell-market-hits-1-billion/
Imagine that you are an Economist and you are trying to answer the following Questions:
How does the resale sneaker market affect the US GDP?
Why are limited edition sneakers sales growing at such a fast rate? Will this help or hurt the economy?
What part does supply and demand theory play in this shoe phenomenon?
What type of externality has been created and how can this be corrected?
Are resold sneakers an intermediate or final good?
What other macroeconomic theory or terms are connected to the sneaker world.
Rubric
Total Points 100 points
Identifies and addresses main topic 25 points
Incorporate course topics 25 points
Supports statements with appropriate sources 25 points
Writing quality and clarity 25 points
Submit MS Word document
Due February 28, 2024 11:59 pm NO LATE Assignments Accepted
