As any ‘A’ level economics student can explain, conventional laws of supply and demand dictate that if goods are in short supply, prices and profits will rise. But, the theory goes, rival producers will rapidly respond to the vacuum, and as the supply expands, so price and profit margins fall until, eventually, equilibrium is achieved, allowing a modest level of profit over production costs. This is because consumers will always want to pay as little as possible.

This should all sound pretty reasonable, and most people would agree that in a mature market, massive profits probably mean sharp practice by someone somewhere along the supply chain. Mention margins of 200% to 300% and eyebrows begin to twitch. Surely here we are talking about criminal activity? Counterfeiting, maybe? Or at the very least, the kind of activities the Office of Fair Trading frowns on?

But a quick glance over a range of products freely available on every high street suggests that accepted views of supply and demand are grossly simplistic. Many manufacturers and suppliers make huge profits on goods displayed beside far cheaper alternatives. It seems that all too often consumers either don’t care about price, or positively prefer to pay through the nose.

There is no suggestion of illegality here. Far from it: in most cases the mark-ups are all too obvious. Take two packs of branded and non-branded aspirin lying next to each other on the pharmacy shelf. In spite of the fact that the pills are identical, it seems that most consumers prefer the brand. It also seems that women have no interest in widely available, impartial medical advice, but prefer to pay huge sums for beauty products promoted with vague (and frequently dubious) scientific claims.

This is just a quick overview of some of the massive margins the consumer seems happy with. But there’s always a particular reason; unfortunately for British industry, it isn’t possible to cast a spell that will make all of the consumers pay over the odds, all of the time. Some readers will always be too impatient to wait for the paperback edition of their favourite author’s new book. Hypochondriacs feel better paying for a comforting, familiar brand. And beauty products? Well, this is a whole industry built around the image of luxury and wealth. In a world of images, carping about the price of ointment shows that you are at heart ineligible to join the ranks of ‘the beautiful people’.

So if some manufacturers have stumbled on a formula that allows them to defy some of the free market’s fundamental rules, surely we should take our hats off to them?