What is Market Price?
Market price is the price of an asset or product as determined by supply and demand.
How Does Market Price Work?
In the broadest sense, an item's market price lies at the point of intersection between the available supply of the good or service and market demand for it. Any shift in the supply or demand affects an item's market price. If demand is held constant, a decline in supply results in a rise in its market price and vice versa. Likewise, if supply is held constant, a rise in the demand for an item results in a rise in its market price and vice versa.
Why Does Market Price Matter?
The market price is the price at which a good or service is bought and sold most efficiently. However, in the real world, there is a great deal of enthusiasm for policies that impact market prices. Rent control laws in New York City, production quotas adopted by OPEC nations and trade barriers enacted by national governments are all example of policies that affect market prices in the real world.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
British economist John Maynard Keynes is one of the fathers of modern macroeconomic theory and...
Read More →
Wall Street can be so predictable sometimes. A company announces an acquisition. The buyer's stock...
Read More →
The Bosphorus River, which divides the eastern and western sections of Istanbul, is also thought of as the dividing line between Asia and Europe. Indeed, that location has enabled...
Read More →
No one is perfect, right? We've all heard this phrase many times -- and most of realize this is true when it comes to our work and home lives. However, for some reason, many people...
Read More →
Our parents, and even grandparents, never saw rates like these. A 15-year home loan now averages 2.84%, while a 30-year loan is...
Read More →
