The prices of the Ralph Lauren Polo line of clothing are considerable
higher than those of comparable quality lines. Yet, this line sells
more than a J.C. Penny brand line of clothing. Does this violate the law
of demand? Why or why not?
Thank you for the opportunity to help you with your question!
This does not violate the law of demand because people may be willing to pay a higher price for the better brand name, Wants and Needs are two different things. Law of Demand applies best with Needs. Wants and Desires are mostly effected by emotion hence emotional purchases are different. This is because the people especially teenagers that want this line are not the ones working for and buying the clothing. Using a parents credit card is not considered "buying". The buyers do afford to pay the higher price because they are not the actual consumer paying for the product. having name Brands are often higher and they try to convince the consumer that their product is better. Alot of markets use branding to sell a similar product for a higher price and there will always be someone willing to pay for it.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 29th, 2015
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