Final answer:
Tommy Hilfiger jeans are likely to have the most price elastic demand because they are a higher-priced, brand-specific luxury item with many alternatives, making their demand more sensitive to price changes.
Step-by-step explanation:
The student has asked which item is likely to have the most price elastic demand: a. clothing b. Tommy Hilfiger jeans c. blue jeans d. pants. Price elasticity of demand refers to how sensitive the quantity demanded of a good is to a change in its price.
In general, higher-priced goods tend to have greater price elasticity, because consumers are more sensitive to price changes when the item takes up a larger portion of their budget. Given the choices, Tommy Hilfiger jeans are likely to be the most price elastic. Tommy Hilfiger jeans are a specific brand and thus tend to be higher priced and more of a luxury item when compared to the other more generic categories. Consumers have many alternatives to branded jeans, making the demand for them more elastic.
As mentioned in the critical thinking questions, normal goods see an increase in quantity consumed when income rises. Tommy Hilfiger jeans would likely fall under this category, while generic clothing items like blue jeans or pants are considered necessities and have a more inelastic demand.