- Market price
In economics, market price is the economic price for which a good or service is offered in the marketplace. It is of interest mainly in the study of microeconomics. Market value and market price are equal only under conditions of market efficiency, equilibrium, and rational expectations.
On restaurant menus, "market price" (often abbreviated to m.p. or mp) is written instead of a price to mean "price of dish depends on market price of ingredients, and price is available upon request", and is particularly used for seafood, notably lobsters and oysters.
Measure of value
In classical economics, market pricing is primarily determined by the interaction of supply and demand. Price is interrelated with both of these measures of value. The relationship between price and supply is generally negative, meaning that the higher the price climbs, the lower amount of the supply is demanded. Conversely, the lower the price, the greater the supply is demanded. Market price is just
- Equilibrium price (the market price typically equals the equilibrium price, although sometimes there may be delays as the price slowly adjusts towards the equilibrium)
- Supply and demand
- Market clearing
- ^ "Supply & Demand on Price". http://www.oxfordfutures.com/futures-education/fundamental-analysis/supply-demand.htm. Retrieved 17 January 2006.
Microeconomics Major topicsAggregation · Budget · Consumer · Convexity and non-convexity · Cost · Cost-benefit analysis · Distribution · Deadweight loss · Income–consumption curve · Duopoly · Equilibria · Economies of scale · Economies of scope · Elasticity · Exchange · Expected utility · Externality · Firms · General equilibria · Household · Information · Indifference curve · Intertemporal choice · Marginal cost · Market failure · Market structure · Monopoly · Monopsony · Oligopoly · Opportunity cost · Preferences · Prices · Production · Profit · Public goods · Returns to scale · Risk · Scarcity · Shortage · Social choice · Sunk costs · Supply & demand · Surplus · Uncertainty · Utility · Welfare Related
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