If H&M commits to transitioning to producing more sustainably-sourced clothing, what do you think could happen to its prices? If H&M's prices go up,
do you think Zara and other fast fashion companies would follow? Discuss your answer from an economist's perspective.
Choose all that apply.
A. If the public begins to shun fast fashion companies because of their toxic production practices, then all companies would have an incentive to
move toward a more sustainable production method.
B. No answers above are correct
C. This could result in a prisoner's dilemma in which H&M moves toward less toxic production methods while the other fast fashion companies do
not
D. If less toxic production methods results in an increase in H&M's prices, other fast fashion companies may not follow since their goods are now
comparable cheaper and of similar appeal.
E. If H&M is the industry leader, other companies would take this as an opportunity to displace them because consumers care mostly about price
when it comes "time to pay". They would not follow H&M's lead.
