The prices of goods and services are important because they help shape economic decisions. If the supply of an item is low but buyers want it badly enough, they will pay a higher price for it. Think about the newest model of a smartphone. People are willing to pay a lot of money to buy it now instead of waiting for it to get cheaper. If sellers want to sell large quantities of an item, they will often be willing to lower their price to an acceptable level. A producer will try to maximize profit but will not make prices so high that buyers reduce their demand.