What is price

A price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services. A price is influenced by production costs, the supply of the desired item, and demand for the product. A price may be determined by a monopolist or may be imposed on the firm by market conditions.

In modern economies, prices are generally expressed in units of some form of currency. Although prices could be quoted as quantities of other goods or services, this sort of barter exchange is rarely seen. Prices are sometimes quoted in terms of vouchers such as trading stamps and air miles. In some circumstances, cigarettes have been used as currency, for example in prisons, in times of hyperinflation, and in some places during World War II. In a black market economy, barter is also relatively common.