Don't think of price, think of return of investment (ROI).
The decision if I should buy a phone for $400 or $1000 should come after answering the question "Are the extra features for $600 worth something to me?" - for some people they'll be worth - e.g. having better quality photos of their family, or having better FPS on the high-end MMORPG. Others don't need that, they don't have a ROI on the extra $600, so should skip the more expensive one.
Now, going out with an old friend and spending $100 on a night out - it's a huge ROI for some, for others not, although I think the latter wouldn't have gone out at first place. The same is valid for holidays and any kind of experiences - people will have huge ROI and will go.
The one McD menu - that's where I personally will never find ROI, so can't speak about it. Even if I am starving, buying a loaf of bread, butter and some potatoes for less than $14 will give me much more ROI.
The decision if I should buy a phone for $400 or $1000 should come after answering the question "Are the extra features for $600 worth something to me?" - for some people they'll be worth - e.g. having better quality photos of their family, or having better FPS on the high-end MMORPG. Others don't need that, they don't have a ROI on the extra $600, so should skip the more expensive one.
Now, going out with an old friend and spending $100 on a night out - it's a huge ROI for some, for others not, although I think the latter wouldn't have gone out at first place. The same is valid for holidays and any kind of experiences - people will have huge ROI and will go.
The one McD menu - that's where I personally will never find ROI, so can't speak about it. Even if I am starving, buying a loaf of bread, butter and some potatoes for less than $14 will give me much more ROI.