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Market price is an economic concept with commonplace familiarity. It is the price that a good or service is offered at, or will fetch, in the marketplace. It is of interest mainly in the study of microeconomics
Microeconomics

Microeconomics is a branch of economics that studies how individuals, households and firms and some states make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold....
. Market value
Market value

Market value is the price at which an asset would trade in a competitive Walrasian auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although these terms have distinct definitions in different standards, and may differ in some circumstances....
 and market price are equal only under conditions of market efficiency, equilibrium
Equilibrium

For the opposite, see disequilibrium.Equilibrium is the condition of a system in which competing influences are balanced and it may refer to:...
, and rational expectations
Rational expectations

Rational expectations is an assumption used in many contemporary Model , and also in other areas of contemporary economics and game theory and in other applications of rational choice theory....
.

et price is just one of a number of ways of establishing the monetary value of a good or a transaction.






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Market price is an economic concept with commonplace familiarity. It is the price that a good or service is offered at, or will fetch, in the marketplace. It is of interest mainly in the study of microeconomics
Microeconomics

Microeconomics is a branch of economics that studies how individuals, households and firms and some states make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold....
. Market value
Market value

Market value is the price at which an asset would trade in a competitive Walrasian auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although these terms have distinct definitions in different standards, and may differ in some circumstances....
 and market price are equal only under conditions of market efficiency, equilibrium
Equilibrium

For the opposite, see disequilibrium.Equilibrium is the condition of a system in which competing influences are balanced and it may refer to:...
, and rational expectations
Rational expectations

Rational expectations is an assumption used in many contemporary Model , and also in other areas of contemporary economics and game theory and in other applications of rational choice theory....
.

Other measures of value

Market price is just one of a number of ways of establishing the monetary value of a good or a transaction. Others include historical cost
Historical cost

In accounting, historical cost is the original monetary value of an economic item. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition....
, the resource cost of the good or service, an appraised value (such as the discounted present value), economic value, intrinsic value
Intrinsic value (finance)

In finance, intrinsic value refers to the value of a Security which is intrinsic to or contained in the security itself. It is also frequently called fundamental value....
, and others. The manner in which the stock market price is presented is by market quoting. This is used for technical analysis of stock markets. Stock quoting is an important feature in market prices.

Classical economics

Many second order factors bear on market price in practice, not least the availability of market information to suppliers and potential purchasers.

In classical economics
Classical economics

Classical economics is widely regarded as the first modern school of history of economic thought. It is the idea that free markets can regulate themselves....
, the market price of a good or service is established in relation with demand, and in inverse relation with supply, which is to say the market price decreases as supply increases, increases as supply decreases, increases as demand increases, and decreases as demand decreases. The actual market price will establish a particular price point, valid for a short period which is the meshing of current demand and supply.

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