Kathy,
I am so glad you asked this question. I, too have wondered the very same thing, as I hate to haggle.
I also want to add that I find your compassion for that vendor very touching and humane. I, too, would have been appalled at the behavior of such an individual, for bickering about something so petty.
I would hate to nickle and dime (or Turkish Lira, as the case is)someone who truly needed that money to survive. However, I would also hate to be taken.
Anyone out there have a good guideline?