1. The man looked at the jeans and said that it costs 2 dollars.
2. ... and then he said that he thought the jeans cost more,... 5 or 6 dollars for example, and he's very surprised.
3. The man answered that they are not worth a cent more than 2 dollars.
4-5. Jim asked if the man is sure and this man said that he is.
6-7. Then he gave the money and answered that these jeans were hanging outside the man's store with the price tag that said 6.50, but Jim thought it was too much money. So before paying he decided to come in and to make sure how much they really cost. Jim gave thanks to the man for knowing the real price and interested if this man will wrap the jeans for him.