Since everybody needs food to survive, why doesn't it cost more than an iPhone?
If you don't eat food, you would die. Nobody would die if they don't have an iPhone. So, shouldn't the price of food be higher than an iPhone?
Added (1). and most people don't know how to grow their own food which increases their perceived value
Added (2). This is strictly economic question, not a morality question
You're Republican are you? What about the poor people who can't afford the high prices? They'll die then
By your logic, we should be paying through the nose for air.
Because it grows on trees.
The demand is very inelastic. Some foods are even inferior. And the Engel's effects are on their way when income increases.
Under capitalism we use supply-demand as the principle for cost.
Demand is high but constant because people always need food and usually the same amount. But supply is very high, the global market has in most cases exceeded the demand of what is needed.
Competition. The market for food is not only broad with a large variety of substitute products (meaning if one product like apples start to cost too much consumers can just buy a cheaper alternative very easily) whereas the phone market has very few substitutes. If the (roughly) two companies who produce phones decide to charge an arm and a leg for their product, what else can you purchase? Only smart phones can do what a smart phone does. On the other hand, a steak and a dozen eggs both serve that same basic need, so if one costs too much, just buy another type of food. If you want to start selling steak or eggs its not very difficult, you don't need expensive factories or skilled engineers and programmers. Plus, brand loyalty makes it extra difficult to compete with Apple's iPhones. How many people do you know of who are pretentious about their brand of egg? Not nearly as many people who have pledged their soul to the iPhone. The market for food functions like perfect competition while smart phone producers exist in more of an oligopoly. There's a lot more to economics than supply and demand!
- Will the iPhone 6 cost more than $1400? So I'm buying an iPhone 6 this year… But I have a spending limit, which is $1400. Do you think that the one with the biggest screen will pass $1400? What do the rumours say? I read that there will be an 4.7 inches and an 5.5 inches model and I want the 5.5 inches one…
- Why is everybody saying the iPhone 4S outdated? In less your going to buy my stuff don't judge on what product I want of course there are the newer iphone models on the market so what? But I just like the more stylish looking iPhone 4S honestly the more upgraded ones are a waste of money
- Why everybody has an iPhone? I See lot of people have iPhone, and i don't know why they spend 800$ for a phone which is not better than other phones. What does iPhone has in compare with other phones?
- Why dose the iPhone cost more on the uk than the us? So I was thinking of buying an iPhone np bit they cost so much why is it £500 in the uk and only $200 in the us is it just cheaper there because apple is smaller or what as its just stupid how expencive the iPhone 5s is