Final answer:
The author suggests that opinions on how valuable a product is vary based on the interplay between consumer willingness to pay and retailer pricing strategies, as well as differences in prices from place to place.
Step-by-step explanation:
The author develops the central idea that people have varying opinions about how valuable a product is primarily by discussing the factors that influence consumer choices and the implications of price changes on consumption. Consumer choices are shaped by personal preferences, but they are also heavily influenced by economic factors such as income, the price of goods and services, and broader circumstances like geographic location or economic climate. The economic theory described in the text explains that the willingness to pay for certain goods and services is not static and can change based on a variety of situational and personal factors, hence the differing opinions on value.
Furthermore, options 1 and 2 from the student's choices directly address how these variations in opinions about value come about. Option 1 suggests that retailers set prices based on what consumers are willing to pay, indicating an interplay between consumer perceptions of value and pricing strategies. Option 2 suggests that the variability in prices of items from place to place reflects differences in perceived value, which could come from a range of factors like varying local demand, availability, and consumer income levels.