Wednesday, November 14, 2012

Why Are Uggs So Expensive

Megan Beauchamp was wondering why the price of Uggs are so expensive. Megan wanted to apply supply and demand fundamentals to a real world situation. I have recently noticed that the price of Uggs have gone up in the past year or so. Uggs may be more expensive if they are now created with more fur and may have a higher quality than when they were first made. Uggs are also the brand name to buy for young teens these days because they are more expensive. Instead of buying emus, which is another type of boot that looks, like they have the same features as uggs and which are cheaper than Uggs. Uggs are also sold in stores where they are fancy and expensive they do not sell uggs at Wal-Mart due to the high price. People buy things that are higher in price and are “status symbol”, like things being hip, hot, or even trendy items. Like jeans most teenage boys and girls buy jeans from the store called buckle and the jeans they sell are big star, silver, and Misme jeans. They are the trend that they teens are wearing so if you don’t wear them then you aren’t like “cool”. Being able to afford these brands your parents have to have some type of income where they can be able to buy things that will not put them in debt as much. Most parents want to please their kids in life so they will buy these brand name items so therefore that increases the number of buyers and also increases the number of sellers. The more the customers buy they more the stores have to sell. Uggs are a substitute good for emus because emus are cheaper than Uggs are so some people might buy the emus because they are cheaper and you technically only need one pair of boots. The Uggs are also a normal good. Christmas time is approaching and this holiday will make the market for Uggs a stronger competitive market because more and more kids want their parents to buy them Uggs. Uggs all the around the world as roughly sold at the same price sometimes ten or fifteen dollars more depending on what store you go to so that would mean that the Uggs are placed into the competitive market. The demand curve is always shifting for many goods like Uggs during the holidays the pricing may go up depending on how many are made and sold. But some people are willing to buy the higher priced uggs and some are not.

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