2. What factors are important in understanding this decision situation? Would you pay $265 for a pair of jeans? Megan Molitor, a columnist for the Kansas State University newspaper, the Collegian, did. "I'm ashamed to admit I have blown my entire paycheck on a single item of clothing. Not just any item of clothing, mind you, but a pair of True Religion jeans..." Megan's "entire paycheck" is from two weeks of work at a fast-food restaurant, a job she took specifically to earn the money to buy the jeans. After the purchase, she quit. True Religion truly exemplifies the power of premium high-fashion clothing and, specifically, the demand for stylish jeans at any price. True Religion is a company that began operations in 2001 selling high-fashion jeans priced from $265 per pair to a whopping $650 or more per pair. Since then, the company has racked up some very impressive growth, with sales now topping $100 million annually. In addition, True Religion's earnings have grown by an average of over 900% in the most recent three quarters. Clearly, selling jeans at $265 and up is a very lucrative business.