A women's outerwear brand NYC Style has been offering quality duck down jackets. The jacket has been sold at $100. However, due to increase in raw material costs and the gas price hike affecting manufacturing and freight, it is inevitable to increase the retail price of the jacket from $100 to $120. The j.n.d. for this product category is 15%. Explain what might happen if the price changes from $100 to $120. Provide reasoning and alternate options. Calculate the percentage increase that NYC style has to implement Provide a suggestion to avoid the negative impact the price increase may bring

Answer rating: 100% (QA)

When NYC Style increases the price of its duck down jackets from 100 to 120 it represents a 20 incre... View the full answer