Price and Value Agreement

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Price and Value Agreement
FIS 200
May 29, 2011
Is the value of something equal to the price tag placed on it? Is the value and worth of something the same for every person? This is something that many struggle with understanding properly. To fully understand this concept then you must understand the true difference between the value, price, and worth of something. I intend to explain these and provide you with a better understanding by the end of this paper.

Have you ever went grocery shopping and purchased multiple items just because there was a half off sale; or a buy one and get one free sale? Many of you probably have, I am one myself that is guilty of this. However, have you ever really thought about the value of that additional item? Since it was free does it mean that there was not value of it either? This is where the importance of knowing the difference in value and price.

The value of something does not determine the price of it; the price is determined by the demand of something and how many are available, or otherwise known as the supply. If there is a high demand of something then there is going to be a lower supply of them available. When the supply is low and the demand is high; people are willing to pay more for that item when it is available.

This is something that you see happening during the holiday season. For example, a few years ago when the Tickle Me Elmo’s were so popular, the stores increased the prices by almost double just because they knew that people would pay it. Are you one of those people that will pay the price for something you want, regardless on how much it is? There are many of people that do; but not me.

I am one of those that will wait for the price to go down; or will do research online to look and see if I can find it cheaper. I am not one of those people that have to have the best of everything; although I do like to stay within the modern days. However, I am willing to pay more for fuel and true...
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