Question

Define the following term.

Price

Answer 1

Price in economics is defined as the value of a commodity expressed in terms of money. It is the money equivalent or the monetary value at which a commodity is bought or sold. Price is distinct from value; while value can be expressed in terms of other goods, price specifically refers to the value in monetary terms.

In other words, price is the exchange value of a unit of a commodity or service measured in money. For example, if one pen is equal to two pencils in exchange value, and one pen sells for ₹ 10, then the price of the pen is ₹ 10, whereas its value is two pencils.

Thus, price is what you pay, expressed in money, for a commodity or service.