Everything Has Its Price (And That’s a Good Thing)
Prices ensure your demands are supplied- even in times of scarcity. But who decides prices? Manufacturers and stores play a role, of course. As Professor Don Boudreaux explains, though, the biggest decider in determining prices is you, the consumer. Prices reflect the value consumers think the products are worth. Whether it’s the price of a bottle of ketchup or a Hermes Birkin purse, the price tag is the end result of a “global chain of cooperation.”
The economist Friedrich Hayek first discovered and articulated the importance of prices. You can learn more about him and his work at www.essentialhayek.org.