: : Don: But the question is how much you are *willing* you pay for it, not how much you would *like* to pay for it.
: But, as a good consumer, I am willing to pay nothing,
Don: If indeed you are willing to pay nothing, you will not buy the product. If all the other consumers are also willing to pay nothing, the product has no value and will cease being produced.
: I will force teh price as close to zero as I can manage, the peddler of whiskey must force the price back up again, in a counter-move. In other words, it cannot be my desire alone which detrmines value - the shop keeper will begin the process by trying to demand the cost of the product for him.
Don: The whisky peddler will price his whisky as high as he can. This will be determined by the demand for the whisky.
: :If no one is willing to pay 15 pounds for it, then the shop block will have to lower his price (or perhaps drink the whisky himself).
: When will they be unwilling? When they can't afford it (see Barry's excellent post).
Don: They will be unwilling when the cost of the whisky is greater than their desire for it. I won't buy something hat costs more than I am willing to pay even if I can afford it.
: :He may take a loss, but he won't restock that item. Not at the previous price, anyhow. And the same is true for all the other store owners who can't sell the overpriced whisky. So the people who distile the whisky are going to have to lower their cost--or stop selling it.
: Right, but that just means that there is no demand for that commodity, that has nothing to do with its exchange value - it just lacks a use-value to realise it.
Don: No, it means the price exceeds the demand. I think it has everything to do with the whisky's exchange value.
: : Don: If there is no desire to purchase the whisky at a price that allows the store owner to make a profit, he may have to sell it at a loss--this happens, because the consumer sets the value. Things that can be sold for a profit are not on the market long . . .
: Yes, but why do they sell at a loss? Because it can be pruchased else-place cheaper, because the market is over-supplied- supply and demand kicks in to lower price. If people need something, they will buy it.
Don: Not necessarly. If something costs too much, and there is only one source of it, I may do without. Obviously, if I "need" something, I will be willing to pay a lot for it. The value is still set my the consumer.