High End Audio vs Budget Gear - The Law of Diminishing Returns in Hi-Fi Explained

I get this question a lot; at what point (or price) can one no longer hear a difference between expensive and budget audio or video components? When does the law of diminishing returns take hold when it comes to audiophile and home theater equipment? I break it down by category and share my thoughts on what you can expect to find at the different price points within the hobby as it relates to your most common purchases. I also share three BIG factors into what might be affecting your ability to tell the difference on a whole no matter what price or tier of equipment you have.