when consumers do not feel the price of a good or service is justified when compared to the perceived utility they are less likely to purchase the item 
for example overvalued prices may lead to higher profit margins for a company but it negatively affects consumers of the product for inelastic goods meaning demand does not change for that particular good or service when the price goes up or down the increased cost may prevent consumers from making purchases in other market sectors in addition some consumers may purchase a lower quantity of the item when possible for elastic goods meaning sellers and buyers quickly adjust their demand for that good or service if the price changes consumers may reduce spending in that market sector to compensate or be priced out of the market entirely undervalued products may be desirable for consumers but may prevent a producer from recuperating their production costs if the product remains undervalued for a substantial period producers will either choose to no longer sell that product up the price to equilibrium or may be forced out of the market entirely land has a near static supply therefore the margin between natural monopoly pricing and rent caps creating deadweight loss is minimal or often non existent in well developed property markets in the case of rent consumers bear most of the deadweight loss from natural monopolies in cities introducing rent caps and a goal for economists is to calculate caps that aren t set too low and lead to minimum consumer producer losses so producers are still willing to invest 