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> price for some product between $5 and $10; the differences within the range reflect difficult-to-see factors such as the seller's internal costs, their own wi
by koonsolo 6y ago
> price for some product between $5 and $10; the differences within the range reflect difficult-to-see factors such as the seller's internal costs, their own willingness to work at different wages, supply-chain issues and the like.
No! Why is it so difficult for people to understand that price is set by supply and demand? Cost has absolutely no influence on how much the customer is willing to pay.
- tuesdayrain 6y ago>Cost has absolutely no influence on how much the customer is willing to pay. Giffen goods are an example of where that isn't true. I have personally experienced it myself when I became more tempted to buy BTC as the price started rising.
- koonsolo 6y agoIt still has nothing to do with cost though. The only things influencing price is always the product and the consumer. How much it cost to make the product has nothing to do with that price, even for giffen goods.
- tuesdayrain 6y agoYou're right, I had an incorrect definition of "cost".