Perception of pricing


Problem:

Prices are often set to satisfy demand or reflect the premium that customers are willing to pay for a product or service. Some critics shudder, however, at the thought of $2 bottles of water, $150 running shoes, and $500 concert tickets.

Take a position:
Price should reflect the value that consumers are willing to pay.
vs
Prices should primarily just reflect the cost involved in making a product or service.
Explain your position.

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Finance Basics: Perception of pricing
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