What to buy:
Hebron is fameous for the Hebron glass - several stores sell locally made glass in different colours and shapes, very beautiful and cheap!
You should also visit the market in the Old City in Jerusalem, there you can buy everything from religious artifacts to furniture, jewlery and books.
And, wether you smoke or not, buy an Agile and some apple tobacco. It is sooo nice, and most of the tobacco is nicotine free as well. Back home it will be a great party-starter!
What to pay: Not everybody wants to cheat you. In Hebron I got a fair price at once, but in Jerusalem, one third of the price they first offer is usually ok. And don't haggle too much over nothing. Even if they overprice you, still it is cheap for you and if you are willing to pay it because it is a nice thing, just give in.
Jerusalem Hebron Road, PO Box 1167, Bethlehem
Good for: Families
Jericho Jerusalem Road, Jericho
Good for: Solo
Nablus Road Albireh, P.O.BOX 2169, Ramallah
Satisfaction: Very Good
Good for: Business