Price FAQs:


Q: Is price the quantity of payment or compensation given by one party to another in return for goods or services?

A: Yes.

Q: Is price the quantity of payment offered by a buyer of goods or services?

A: Yes, although this meaning is more common in asset or financial markets than in consumer markets.

Q: Is price the price a seller gets after removing any taxes paid by a buyer and adding any subsidy the seller gets for selling?

A: Yes.

Q: Is price generally believed to hold?

A: Yes.

Q: Is price set so as to equate the quantity being supplied and that being demanded?

A: Yes.

Q: Are prices sometimes quoted in terms of vouchers such as trading stamps and air miles?

A: Yes.

Q: Is price what a buyer pays to acquire products from a seller?

A: Yes.

Q: Is price the amount the producer gets from a buyer for a unit of a good or service produced as output minus any tax?

A: Yes, and it excludes any transport charges invoiced separately by the producer.

Q: Is price commonly confused with the notion of cost of production, as in “I paid a high cost for buying my new plasma television”?

A: Yes, but technically these are different concepts.

Q: Are prices generally expressed in units of some form of currency?

A: Yes.

Q: Are prices known as the transformation problem?

A: Yes.