price

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Price

The value of a thing with real or perceived worth. Price represents the amount of value the market has assigned, fairly or unfairly, to a good or service. Normally, prices are expressed in terms of money, but practices such as countertrade and PIK securities indicate that prices may be expressed in goods: "four chickens for two sheep." Price is a necessary component of trade.

Prices tend to be regulated by the law of supply and demand; that is, a price of a good or service increases with smaller supply and/or greater demand. A corollary to this is the idea that commoditization drives prices down because it increases supply (sometimes vastly) while leaving demand the same. Prices likewise rise when the value of money declines. Governments can and have controlled the prices of certain goods and services by subsidy or decree. This is usually an anti-inflationary measure and tends to distort, rather than eliminate, the law of supply and demand. It is thus not generally sustainable as a mechanism for controlling price.

price

The dollar amount at which a security trades. Stocks are nearly always quoted fully (that is, $25 means $25 per share), while bonds are ordinarily quoted as a percentage of par value (that is, 98 represents $980 per $1,000 par bond).

price

the money value of a unit of a GOOD, SERVICE, FINANCIAL SECURITY or ASSET which a buyer is required to pay a seller to purchase the item. Usually the price of a product is fixed by the seller in advance on the basis of the costs of producing and selling the product and the seller's desired profit margin. In other cases, however, prices are variable, being determined by prevailing demand and supply conditions as with the sale, for example, of a STOCK or SHARE, a house or items sold at an auction.

Because a purchase involves a money outlay on the part of buyers who operate within a budget constraint, the price of a product is an important factor in the buying decision. It may well be the paramount consideration in many cases, but for some purchases other elements in the MARKETING MIX (product quality and performance etc.) may be equally if not more important. Thus, although many products (especially COMMODITY-TYPE PRODUCTS) tend to be sold at low, competitive prices, many others can be sold at higher prices, providing customers with a variety of price-quality trade-offs and other product attributes. See MARKET STRUCTURE, MONOPOLY, BUYER'S MARKET, SELLER'S MARKET, PRICING, PRICING OBJECTIVES, PRICING METHODS, FOUR P'S OF MARKETING.

price

the money value of a unit of a GOOD, SERVICE, ASSET or FACTOR INPUT. In some markets (for example, see PERFECT COMPETITION), price will be determined entirely by the forces of DEMAND and SUPPLY. By contrast, in other markets (for example, MONOPOLY markets) powerful suppliers have considerable discretion over the price that they charge. In certain circumstances, prices may be subjected to governmental PRICE CONTROL or regulated by means of PRICES AND INCOMES POLICY. See also EQUILIBRIUM MARKET PRICE, ADMINISTERED PRICE.

price

An amount of money exchanged for something of value.

References in periodicals archive ?
That ban would undermine a key argument against requiring sales price disclosure in real estate transactions, according to proponents of mandating disclosure.
The average sales price increased 31 percent to $2,062,072.
While the second-quarter co-op median sales price was $700,000-up 40 basis points from $697,501 in the second quarter of 2010-the condominium median sales price fell 2.
For the first time, the average sales price in this neighborhood surpassed the million-dollar mark, checking in at $1,087,950.
However, hotel sales prices are influenced by factors other than just profits.
The lowest average sales prices were in Mojave and California City, at $118,074, up 34 percent from the year before.
The list highlights counties within the Washington metropolitan area that have gained momentum since last year with an upswing or stabilization in the median home sales price.
While Brooklyn and Manhattan have posted some of the highest average sales prices this quarter, the positive volume of Queens and Staten Island sales year-over-year reflects the continued growth of the housing market citywide," said Steven Spinola, president of REBNY.
Lancaster's median home sales price rose to $175,000 in November, while Palmdale's November median dipped slightly to $195,000, according to figures released by the California Association of Realtors.
Brooklyn and Queens apartments retained their values in the second quarter with Brooklyn average sales prices rising 3% to $500,000 and Queens average apartment prices increasing 7% to $286,000.
Average Manhattan home sales prices (for cooperatives, condominiums, and one-to three-family dwellings) showed the biggest increase, and were up 13 percent to $1,450,000 compared to the same time last year.
Despite rising New York City home sales prices, transactions declined by 24% in the fourth quarter of 2010 to 8,800 from 11,600 in the fourth quarter of 2009.