Question

Discuss a specific real-world illustrative example of Neoclassical economics policy

Answer 1

Unlike classical thinking neoclassical economics policy basically emphasizes on the concept that price of any commodity is greatly impacted by consumers perception of its price. Which means its price would go as high as consumers think it should go.

a great real world example of this is "premium pricing" this is a policy according to which brands keep extremely high prices for their products. These prices are set according to the mindset of their consumers and these extremely high prices gives a feeling of class and standard to its consumer.

For e.g . Apple, versace