MARKET PRICE Meaning and
Definition
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Market price refers to the prevailing or current value at which a particular good, service, or financial asset is being bought and sold in an open market. It is the price that buyers are willing to pay and sellers are willing to accept for a given product or asset in a competitive market.
The market price is determined by the forces of supply and demand, where the interaction of buyers and sellers in an open market setting establishes the equilibrium price. When there is high demand and limited supply, the market price tends to increase due to the scarcity of the product or asset. Conversely, when demand is low and supply is abundant, the market price tends to decrease as sellers lower their prices to attract buyers.
Market price serves as a benchmark or reference point for pricing in various marketplaces. It is commonly used to estimate the value of assets such as stocks, commodities, real estate, or currencies. It also plays a crucial role in determining the profitability and sustainability of businesses, as companies assess market prices to determine the optimal pricing strategy for their products or services.
It is important to note that market price can be influenced by factors beyond supply and demand, including government regulations, taxes, subsidies, market expectations, and economic conditions. These external factors can impact the equilibrium price and lead to temporary deviations from the market price.
Common Misspellings for MARKET PRICE
- narket price
- karket price
- jarket price
- mzrket price
- msrket price
- mwrket price
- mqrket price
- maeket price
- madket price
- mafket price
- matket price
- ma5ket price
- ma4ket price
- marjet price
- marmet price
- marlet price
- maroet price
- mariet price
- markwt price
Etymology of MARKET PRICE
The word "market" originates from the Latin word "mercatus", which means "buying and selling" or "trading". It is derived from the verb "merx", meaning "merchandise" or "goods".
The term "price" comes from the Latin word "pretium", which refers to the value or worth of something.
Therefore, the etymology of "market price" indicates that it is a combination of "mercatus" and "pretium", representing the value or worth of goods or merchandise within a trading or buying/selling setting.
Similar spelling words for MARKET PRICE
- market forces,
- market garden,
- market square,
- market order,
- marketable,
- market day,
- market value,
- market town,
- marketing,
- market cross,
- marketplace,
- market letter,
- market research,
- market economy,
- market keeper.
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