Answered: The prices of Ralph Lauren polo line of…

The prices of Ralph Lauren polo line of clothing are considerably higher than comparable quality lines. Yet it sells more than a JCPenny brand line of clothing. Does this violate the law demand?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The prices of Ralph Lauren polo line of clothing are considerably higher than comparable quality lines. Yet it sells more than a JCPenny brand line of clothing. Does this violate the law demand?

Definition Definition Economic principle that states that as the price of a good or service increases, the quantity demanded by consumers decreases, while a decrease in price leads to an increase in quantity demanded, assuming all other factors affecting the demand remaining constant.

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