Question

• Think of a situation when you paid for something that was grossly overpriced. Analyze the purchase’s price and quantity using the concepts you learned in this module. Why did you buy something you knew was less expensive elsewhere? Do you ever feel as though sellers take advantage of people? Explain.
• Now think of a situation when you found something at a bargain price, and analyze the purchase price and quantity using the concepts you learned in this module. Did you buy all that the store had? Why or why not?
  • Having learned the concepts in this module, how will the forces of supply and demand change your future buying habits?
  • Do you believe laws should be enacted to prevent sellers from using the forces of supply and demand to take advantage of people’s need for their products? Why or why not?

Answer 1

We buy something more expensive when we knew its less expensive some where else because psychology concept of expensive things will give us high quality product to get those high quality product we buy expensive things in real life we buy based on feeling inspite of rational thoughts.

Yes ,I know seller take advantage of people's feelings ,emotion .when seller knows buyer bas certain geelings with product than it increases the price of the product so that he take advantage of buyer's emotions.for example During valnetine week price of teedies ,roses goes on peak becuase buyer know today is a day of celebration to celebrate rose day,or valentine day people will definately buy it so why not take advantage of this.