Questions On Lesson 1-4.

Good Essays
Part A – Questions on Lesson 1-4
1. Choices are made every day, where one is required to determine if an assigned value for an item, product or service, is justified and whether the value that it has been attributed is palatable and will be honoured. The subjective decisions made by any consumer in the market place, about values of a good, service or product is the result of an interplay of supply and demand factors in the market (Dybvig, 2010). For example, do you buy a blouse that is marked $150.00 or do you forgo making that purchase for something different and perhaps cheaper, or maybe purchasing something even more expensive? Do you buy that new iPhone 6 plus, or do you make a decision to purchase an older version of the iPhone series, which is smaller and less inexpensive, but offers most of the same amenities. Or do you buy a blackberry or Samsung, and if so, which model and how much do you want to spend? Factors of utility, scarcity, price, the price alternatives available, and the goals of the owner (desire, and effective purchasing power) all interrelate and affect value (Dybvig, 2010).

As discussed in the text (Dybvig, 2010), “value is not inherent in the commodity, good, or service to which it is ascribed. Rather, it is created in the minds of the individual who make up the market. The relationships that create value are complex, and values change when the factors that influence value change” (p. 2.1). There are a variety of factors that affect the
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