Price

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Price

Meaning

Price is the amount of money a buyer pays to get a product or service. It shows the value that the seller places on it and what the buyer agrees to pay.

Example :

For instance, if a shirt is priced at ₹800, it means the buyer must pay ₹800 to buy it. Also, airline tickets cost more during holiday seasons because many people want to travel.

How to Understand :

1. Price acts like a signal - when something is expensive, it means it's rare; when it's cheap, it means there's a lot of it.

2. It reflects how much value customers see in a product, like its brand, quality, or usefulness.

3. Price helps balance how much people want a product (demand) and how much is available (supply).

4. Different ways to set prices include cost-based (how much it costs to make), value-based (how much customers think it's worth), competition-based (what others charge),demand-based (how much people want it), and dynamic pricing (changing prices based on demand).

Importance :

1. Price affects how much money a business makes and how much profit it earns.

2. It influences what consumers decide to buy - people often compare prices before making a purchase.

3. Price helps businesses position themselves in the market, whether as premium brands or low-cost options.

4. It controls how much of a product people want to buy.

5. Price guides important economic decisions, such as how much to produce and where to invest.

6. It serves as a measure of the perceived value of a product.

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Price Meaning

Example :

How to Understand :

Importance :

Price

Meaning