Quote from: jumiapaul on June 20, 2019, 09:26:01 AM

Quote from: filipe3x on June 20, 2019, 09:07:10 AM

All the same, it seems to me that the price of 250 euros for a simple bow tie is somewhat overestimated. Yes, I understand, unique design, good materials, limited edition. But there will be few buyers.

Luxury products by nature attracts few buyers. That's clearly because most consumers are rational and spend money on items that give them maximum satisfaction. The utility potential of a product is considered before making purchase and a rational consumer carries out a cost - benefit analysis before settling for a product.

I appreciate your effort in explaining the notion of demand by a rational consumer. In my opinion, every product has a market which is a set of people who are willing to buy and can afford to buy. The bowtie of $250 is quite expensive from my perspective, but am certain that some persons would be willing to buy and can afford to buy at even a much higher price.