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I am speaking only from an observational point of view and don't have any experimental data to back-up my observations so feel free to correct me.

Why does the US appear to have a market that does not follow basic rules of Price and Demand? Higher priced products are automatically considered of better quality. And this excludes products that provide a status quo, like iPhones and designers clothing. Things that we do not even have to advertise about their brand to our friends such a basic goods, like furniture, beds, tooth brush etc.

I have observed that products above medium priced are doing better financially than lower priced products that offer the same quality of product. Hence it is difficult for a competitor to just launch a cheaper same product and do well in the market.

My personal hypothesis:

Lack of knowledge from the public, lack of skepticism, and deceiving marketing strategies from the manufacturers

Also the public in the US is highly less likely to research a purchase, and opt for a medium priced product. In addition to that, the economy does well and people feel like their time is worth more than their money

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