The concept of Just Price revolves around the idea that prices should reflect fairness and justice, ensuring that basic goods are affordable for all members of society, particularly the less fortunate. This principle emerged from medieval economic thought, which emphasized moral considerations in economic transactions. Within this framework, the notion is that goods should be priced in a way that allows even the poorest members of society to meet their essential needs without exploitation.
This approach contrasts sharply with the idea that prices should solely benefit the merchant, which promotes self-interest over social welfare. The suggestion that prices should be fixed by the government implies a level of economic control that may not reflect market realities or justice in individual situations. Finally, the notion that prices should vary according to demand does not align with the Just Price concept, as it can often lead to pricing that excludes those with limited means, focusing instead on market forces rather than fairness or accessibility. Thus, the correct answer emphasizes the ethical imperative to ensure that prices are established in a way that serves the common good.