Revelation

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According to BusinessDictionary.com, the definition of Price Effect is: The impact that a change in value has on the consumer demand for a product or service in the market. The price effect can also refer to the impact that an event has on something's price. The price effect consists of the substitution effect and the income effect. This means that the price of items directly correlates with the consumers demand, as we learned in class, but it also shows that goods are better to buy at times that the consumers aren’t demanding it. I’ve found out over personal experience and research that my overall research question, isn’t really a question at all, it’s more just common sense when you take the time to just think about it. I mean, everyone wants, let’s say, sweatpants for winter, so sweatpants retailers will bump up the price because they know people will buy them. Then, once the craze sort of blows over, they lower them back down because no one's gonna buy them at that price anymore, and that would be the perfect time to buy them. Advertising plays a big role in this process as well. Companies would advertise sweatpants during the prime sweatpants season and make everyone think that they need to get it. Even when they have sales, sometimes they increase the price then add the sale to keep it at what it was before while tricking the buyer into thinking there is a sale. This leads into my next topic, Do sales really save you money, and are you really buying a worthwhile product. I plan to look into sales, Black Friday For example since it is coming up this week.