Lee, J Brand, Joe's Jeans, Paper Denim & Cloth, Levi's, Wrangler, and many others are all producers of jeans. J Brand jeans sell for about $200 a pair. What would happen if J Brand priced their jeans at $220 per pair?

Question

Quizplus · Accepted Answer

If J Brand increases the price of their jeans from $200 to $220, they would likely sell fewer jeans because demand is generally elastic for luxury goods like high-priced jeans. This means that consumers are sensitive to price changes and may choose other brands if the price increases.