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I imagine anyone who could provide a very concise, comprehensive, and accurate explanation for such things would promptly receive a Nobel prize in economics. T
by dwaltrip 6y ago
I imagine anyone who could provide a very concise, comprehensive, and accurate explanation for such things would promptly receive a Nobel prize in economics.
There are some rough approximations we know to look at (e.g. the "market price" of the inputs, existence of competing products, and so on). But as you clearly noted, there are an immense number of complex factors affecting this.
- bradleybuda 6y agoThere's a very concise explanation for why someone would pay $4 for a cappuccino, and it's the one they teach you in Econ 101: it was worth at least $4 to the buyer, and it couldn't be found more cheaply from a similar (location, quality, convenience) seller.
- dwaltrip 6y agoSure. But that still isn’t terribly satisfactory. Why is it the case that there aren’t buyers and sellers at other prices? I don’t think we can concisely and accurately answer that.