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this post was submitted on 14 Nov 2023
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Asklemmy
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Product pricing actually has very little to do with what the actual product costs to make, other than to determine whether it is financially viable to produce.
Rather, the aim of a seller is to maximize their profit by choosing the most efficient selling price for a specific demand. For a house, demand has greatly outstripped supply, and a buyer requires a place to live, so prices are high. Similarly, during the pandemic, the utility of computer parts was high and demand was high since many had to work from home, so prices went high.
It certainly gets more complicated than my (ECON 101 level) explanation here, but companies have just been taking advantage of a high demand for things and for people's needs (e.g. housing and food) there is little to no pressure to reduce costs as demand is poorly correlated with price (inelastic).