The term "price" covers various aspects in the field of economics, all of which center around the retail price of a product and its influence on consumer behavior. For many, the retail price itself is called the "price point", which illustrates the common use of the term. What exactly does a price point mean, examples and how it works, read Priceva blog by https://priceva.com/blog/price-point
Understanding price dynamics is critical for both manufacturers and retailers in the retail industry.

Retailers strive to find a balance where consumers perceive the price to be fair and demand remains stable. If the price is set too high, demand may decrease, resulting in lower sales and potentially lower profits. Conversely, lower prices can stimulate demand, resulting in profits being generated by increasing volume, a strategy commonly used by wholesalers and discount retailers.

From a psychological perspective, there are intriguing aspects to consider regarding prices. Consumers are often attracted to prices ending in odd numbers, and prices ending in 0.95 or 0.99 are generally perceived as more attractive. Consequently, savvy companies and retailers often choose to end prices this way to create the impression of greater savings, regardless of the actual price difference.

Moreover, price changes can significantly affect consumer perceptions. Having become accustomed to a certain price, consumers perceive it as a fair value. Any increase above this perceived fair price may cause resentment, even if justified by factors such as inflation or rising costs. Conversely, price cuts create problems for companies trying to raise prices to previous levels because consumers associate the new, lower price with a better, fairer value.