Prices ensure your demands are supplied‐ even in times of scarcity. But who decides prices?

Who decides prices? Manufacturers and stores play a role, of course. As Professor Don Boudreaux explains, though, the biggest decider in determining prices is you, the consumer. Prices reflect the value consumers think the products are worth. Whether it’s the price of a bottle of ketchup or a Hermes Birkin purse, the pricetag is the end result of a “global chain of cooperation.”

This is part of a Fraser Institute project to present the key ideas of F. A. Hayek.