The American Girl catalogue began as a concept to introduce today's girls to girls who lived in the past.Each historically accurate doll is carefully crafted and dressed and has books to describe her life.For example,Kristen is an 1854 pioneer girl who is growing up in Minnesota.Her story begins with her long sea voyage from Sweden.The basic doll dressed in a calico dress and striped apron plus the hardcover story of how she got to Minnesota costs $90.Six more hardback books of Kristen's life are available for $74.95.Kristen's nightgown costs $20,and a matching one for the doll owner is an additional $38.Buy both together and the price is only $50.A hand-painted wooden bed and trunk for Kristen are available for $213.Shipping costs vary with the price of the merchandise ordered.
-Refer to American Girl Doll.The popularity of the American girl dolls is so great that an increase in the price of the basic Kristen doll and books by 5 percent will not significantly affect the demand for the product.What is the demand for the American Girl doll?

Question

Quizplus · Accepted Answer

The demand for American Girl dolls is inelastic, as a 5 percent increase in price will not significantly affect the demand for the product. This suggests that the product is a luxury item and consumers are willing to pay a premium for it, regardless of small price increases.

The American Girl Catalogue Began as a Concept to Introduce