Hi Shequena,

In Economics, product price is determined by the forces of demand and supply "Ceteris paribus" (all thing being equal), that is, the equilibrium price; where demand meets supply. However, some the variables that determine what customer pays for an item before demand and supply come into play are brand equity and brand image. Customers perceived value is determined by the price they are willing to pay for such item, hence when the price for the product does not meet the customer's perceived value, the demand for such product is low even during the product growth stage in its product life cycle. For instance, before Amazon bought Whole Foods, the brand was associated with healthy food, however, the brand was also associated with