As the consideration given in exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may be fixed by a contract, left to be determined by an agreed upon formula at a future date, or discovered or negotiated during the course of dealings between the parties involved.
In commerce, price is determined by what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the competition is allowing to be charged. With product, promotion, and place of marketing mix, it is one of the business variables over which organizations can exercise some degree of control.
It is a criminal offense to manipulate prices (see price fixing) in collusion with other suppliers, and to give a misleading indication of price such as charging for items that are reasonably expected to be included in the advertised, list, or quoted price.
Use price in a sentence
The price of stock prices are influenced by national, regional economic news, government policies, the companies performance, and or simply by the excitement or the panic of investors of this stock.
The price of this hat is 10 dollars. However, with a little bit of haggling I was able to get the store owner to lower the price to 8 dollars.
There where so many luxury vehicles to choose from however, the woman had to look at all the prices to see if she could afford the car.