Price
A price is the ordinarily not negative quantity of payment or compensation assumption by one party to another in service for goods or services. In some situations, a price of production has a different name. if the product is a "good" in the commercial exchange, the payment for this product will likely be called its "price". However, if the product is "service", there will be other possible denomination for this product's name. For example, the graph on the bottom will show some situations A good's price is influenced by production costs, supply of the desired item, as well as demand for the product. A price may be determined by a monopolist or may be imposed on the firm by market conditions.
Price can be noted to currency, quantities of goods or vouchers
In numerous financial transactions, this is the customary to quote prices in other ways. The nearly obvious example is in pricing a loan, when the cost will be expressed as the percentage rate of interest. The statement amount of interest payable depends upon consultation risk, the loan amount in addition to the period of the loan. Other examples can be found in pricing financial derivatives and other financial assets. For instance the price of inflation-linked government securities in several countries is referred as the actual price divided by a factor representing inflation since the security was issued.
"Price" sometimes refers to the quantity of payment known by a seller of goods or services, rather than the eventual payment amount. This known amount is often called the asking price or selling price, while the actual payment may be called transaction price or traded price. Likewise, the bid price or buying price is the quantity of payment offered by a buyer of goods or services, although this meaning is more common in asset or financial markets than in consumer markets.
Economic price picture asserts that in a free market economy the market price reflects interaction between supply and demand: the price is breed so as to equate the quantity being supplied and that being demanded. In turn, these quantities are determined by the marginal utility of the asset to different buyers and to different sellers. supply and demand, and hence price, may be influenced by other factors, such(a) as government subsidy or manipulation through industry collusion.
When a raw material or a similar economic value for sale at multiple locations, the law of one price is broadly believed to hold. This essentially states that the make-up up difference between the locations cannot be greater than that representing shipping, taxes, other distribution costs and more.