Ball Bearing Set

If prices are set by costs and not by value how can any entity price itself out of the market?

Conservatives often insist that higher costs on business is really just a tax on us as they will pass all pain onto us. They insist prices are established by costs; not independently of them by way of speculative market value. If this is true; how can any commodity be prices out of its own market? That alone implies the market can bear only so much.
So if we can establish prices are determined by a speculative value and not the costs associated doesn't this pass the ball into the court of profit MARGINS?
uncle meat that is correct. However my question remains unanswered.

You are phrasing the question as it it's an either/or issue, and it's obviously not.

You are also missing the point that some items are essential and the demand is primarily NOT optional -- e.g, fuel, heating oil, electricity, water, basic foodstuffs.

Below a certain point, most people MUST buy gasoline, food, water ... at ANY price. When cigarettes went to 4 or 5 bucks a pack most people cut down or quit. Try that with gasoline, home heating oil, the trash bill, or food. Nobody liked paying 5 bucks a gallon for gas, but who had a choice?

Forcing higher costs such as taxes on business IS passed along to the consumer. And in many cases, he simply has no choice but to pay it.

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