Prices are often set to satisfy demand or reflect the premiu

Prices are often set to satisfy demand or reflect the premium that consumers 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. Is the right price a fair price? What is your position on this debate? Please use relevant concepts and theories

Solution

fair price is the price where the seller is ready to pay to own a product and even the buyer is ready to offer at this price. means the price can be depends on the demand and supply of the product by market forces.

fair price is not the correct price, because some rich people may ready to pay higher amounts to a normal product and some poor people may not pay little amounts to own a normal product. so, product price should not be fixed based on the willingness of the buyer.

irrespective of the sellers and their abilities the price has to be fix, and every one should be fix for this only. in this competitive world every strategy and plan, both are supporting to the rich only. poor are being poor for the last decades and now they are becoming much poorer. the reason is the discrimination in the market levels and the regulations followed by those.

if a product wants to offer at different prices in different markets, then the producer should go with price discrimination. it can not be possible in this competitive world.