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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market price — n 1: the price at which a security is currently selling on the market 2: market value (1) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
market price — n. the price that a commodity brings when sold in a given market; prevailing price … English World dictionary
market-price — market priceˈ or market valˈue noun The current price a commodity, etc will fetch at sale • • • Main Entry: ↑market … Useful english dictionary
market price — n the price of something on a ↑market at a particular time … Dictionary of contemporary English
market price — noun count or uncount BUSINESS the price that a product can be sold for at a particular time … Usage of the words and phrases in modern English
market price — The last reported price at which a security was traded on an exchange. Bloomberg Financial Dictionary Last reported/known price of a financial instrument in a market. Euroclear Clearing and Settlement glossary The price of a security. For shares … Financial and business terms
Market Price — The current price at which an asset or service can be bought or sold. Economic theory contends that the market price converges at a point where the forces of supply and demand meet. Shocks to either the supply side and/or demand side can cause… … Investment dictionary
market price — The price at which a seller is ready and willing to sell and a buyer ready and willing to buy in the ordinary course of trade. The price actually given in current market dealings; price established by public sales or sales in the way of ordinary… … Black's law dictionary
market price — noun a) The price at which a product, financial instrument, service or other tradable item can be bought and sold at an open market; the going price. The actual price at which any commodity is commonly sold is called its market price. It may… … Wiktionary
market price — A price determined by the demand for the commodity in relation to the supply; the price in an open market. 46 Am J1st Sales § 180. If the market is not open but subject to control by all who offer a commodity of like kind, by fixing a price,… … Ballentine's law dictionary