The general idea that price indicates quality assumes that the prices are objectively determined by market force. This is referred to as 'perceived value'.

Question

Quizplus · Accepted Answer

The concept that price indicates quality is related to 'perceived value', but it does not assume prices are objectively determined by market forces. Instead, it suggests that consumers often equate higher prices with higher quality, regardless of the actual cost or market forces.

The General Idea That Price Indicates Quality Assumes That the Prices