Question

When supply is low and demand for goods and services are high, prices increase. As a consumer, what goods and services are most important to you? What goods or services are you willing to pay high prices for? Explain your answer.

Answer 1

Answer:

Goods that are healthy and help with you daily life and are part of your necessities. Housing, groceries, and child care are what I am willing for.

Answer 2

Here, the Opportunity Cost and the Foregone Alternative come to play. When demands are high it automatically affect the prices because many will be in need of the said goods or services thereby attracting a higher shift in price.

I would pay high for goods or services which pertains to health and food because it doesn't have any other alternative or replacement if I eventually decide not to subscribe to the higher price.