The Canadian 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 Manitoba.Her story begins with her long sea voyage from Iceland.The basic doll dressed in a calico dress and striped apron plus the hardcover story of how she got to Manitoba 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 Canadian Girl Doll.The popularity of the Canadian 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.This means that the demand for the Canadian Girl doll is which of the following?

Question

Quizplus · Accepted Answer

The fact that an increase in price of 5% will not significantly affect demand indicates that the demand for the Canadian Girl doll is inelastic. In other words, customers have a relatively low sensitivity to changes in price, which suggests that they are willing to pay a premium for the product, regardless of price increases.

The Canadian Girl Catalogue Began as a Concept to Introduce