This is because there is more than one substitute in the industry, which implies that there are many sellers of these products both regionally and globally. Big competitors like Reebok and Addidas set a range of prices for shoes, clothing and equipment, so if Nike raises prices above current limits, customers will likely turn to competitors as they look for places where they can get more. for their money. This is mainly due to the high elasticity of demand. On the other hand, lowering prices is not sufficient for the available supply as consumers may start to worry about the low price offered for products as low prices are often associated with low quality items. Additionally, it is crucial to note that revenue affects price elasticity. Since competition for Nike is significantly high, prices must be set competitively, thus limiting profits to the price level that buyers are willing to pay.