The correct answers are B) "The price a consumer is willing to pay for a garden hose—its “perceived value”—is a lot higher in Germany than in the United States." And C) "If you want to buy a bottle of water while strolling through Central Park, you may be in for a shock."
Those are the sentences from the passage that support the idea that prices vary for complicated reasons.
The passage states that most consumers look for the best quality item for the lowest possible price and that the price they are willing to pay is influenced by many factors such as the wage they earn at work, how much they need the item, the amount of money they pay for their food, housing, and clothing. These factors change from one place to another and of course, prices too.
That is why is so difficult to understand that a bottle of water in your city cost $1.99, but in Central Park, New York, the same bottle different label can cost twice or more...and people pay it because they agree with the cost and the necessity that is satisfying. The same with the hose in Germany. It that is the correct value Germans assign to the function of the hose, they have no problem to pay an expensive price.
