When a product is elastic, the availability of substitutes is high. Let's take for example North Face jackets. For the past couple of years the sales of North Face jackets has increased exponentially. With the high cost of the jackets, consumers looked for a way to increase their consumer surplus. After a couple of years, North Face knock-off jackets emerged and consumers realized how cheap they were and started buying them.
When I first heard about these jackets I immediately wanted one because they are so warm, comfortable, and fashionable. My mom is a big bargain shopper and she wouldn't let me spend over $100 on a black jacket. This year we were shopping at TJ Maxx (probably one of my favorite stores!) and I found a similar jacket for $20, but it didn't have the North Face label on it. This was an amazing bargain and I had to get it. Now, I have a warm, black jacket that is just as good as a North Face and I saved over $80!
The availability of substitutes for a North Face jacket increased therefore, North Face’s demand decreased and the demand for the knock off brand increased, making the knock-offs sales increase. Now everyone (except North Face Co.) is happy and warm.
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I really like your economic decision to shop at TJ Maxx. That store has saved me a lot of money over time. Another economical store is a thrift store! People get turned off by the thrift store, but i honestly have found some cool t shirts that cost me only $1.00. Most of the stuff is crap, but it is possible to find some lacoste sweaters or even some aviators (which I sold on ebay for $45). Thrift stores and TJ Maxx are ever economical for poor, college kids like us!
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