What determines the prices of goods and products?

[btaliat]

Have you ever wondered why almost all buyers in the same country sell a particular goods the same price. Have you now tried to ask yourself how this price is determined.



Price determination is always determined based on the type of economic system that a country practices. That is, whether a country practices socialism or capitalism. This will determine the price.




In capitalism, the price of a particular goods and products is determine by the force of demand and supply. This means the more people demand or the more goods and service are supplied will determine the price of such goods and products. Exceptional case may be under imperfect market where there maybe be arbitrary fixing of pricing by someone monopolist or oligopolists.



In contrary, in socialism, there is price regulation by the government. In this case, all the sellers of a particular goods and products through out the country sell at the same price unlike in capitalism where there may be slight different in prices base on location. Just like in capitalism, there may be exceptional to this as well, there may be deregulation by the government which may allow the individual to fix their prices.

 

[Alexandoy]

The prices of goods in the ordinary market is dictated by the law of supply and demand. However some commodities are controlled by traders here that the traders are the ones who are dictating the prices of some vegetables and fruits. The government should be strict in the enforcement of the prices of consumers goods.

 

[Mika]

The price of a product is determined by the cost involved in the product development and money spent on marketing. The cost also depends on the uniqueness of the product. iPhone costs more money than other phones because it has unique software and features not found on other devices. You are paying extra not just for bitten apple, but for the uniqueness.

 

[Samuel72]

A price of goods can be determined by the cost of making the products. when you spend much money in manufacturing a product there's a possibility for that poduct to be expensive. Some television are more expensive than the other because of the features it has on it, this futures makes it more expensive

 

[uforwealth]

The price of goods or products can best be determined by the forces of demand and supply. That is, the higher the price of a particular product, the lower the quantity demanded of such a product and if the price of that same product is low, more of that product will be demanded.
For example, in Nigeria today, a tin of 'gari' costs 50 naira. If the price decreases to 10 naira per tin, demand for 'gari' will increase and vice versa.

Furthermore, supply also determines the price of any product. If there is an increase in the price of a unit of product, the supplier or producer of such product will be willing to supply more of that product in order to maximize profit but if the price falls, the supplier will supply less because the higher the price, the higher the quantity supplied.

 

[btaliat]

The price of goods or products can best be determined by the forces of demand and supply. That is, the higher the price of a particular product, the lower the quantity demanded of such a product and if the price of that same product is low, more of that product will be demanded.
For example, in Nigeria today, a tin of 'gari' costs 50 naira. If the price decreases to 10 naira per tin, demand for 'gari' will increase and vice versa.

Furthermore, supply also determines the price of any product. If there is an increase in the price of a unit of product, the supplier or producer of such product will be willing to supply more of that product in order to maximize profit but if the price falls, the supplier will supply less because the higher the price, the higher the quantity supplied.

Just like I highlighted, the method you mentioned is only workable in a capitalism economy. A capitalism economy is the one that allows individuals to be the sole dictators of the means of production and exchange. In contrast, socialism which allows government to be the sole controller doesn't allow force of demand and supply to be the determiner of the price of goods and services. Government regulates pieces.

 

[btaliat]

A price of goods can be determined by the cost of making the products. when you spend much money in manufacturing a product there's a possibility for that poduct to be expensive. Some television are more expensive than the other because of the features it has on it, this futures makes it more expensive

That's another angle to look at the determinant of prices but all these still boil down to the capitalism system of economy. It is not far fetched to see some people trying to add the cost of transportation to the price thay they will finally give the consumers. Now the final price of their goods will now be the actual price plus transportation cost together with the gain.