market price

noun
Updated on: 26 Jul 2017

Definition of market price

  1. :  a price actually given in current market dealings

First Known Use of market price

15th century


Financial Definition of MARKET PRICE

market price

What It Is

Market price is the price of an asset or product as determined by supply and demand.

How It Works

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 It Matters

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.


MARKET PRICE Defined for English Language Learners

market price

noun

Definition of market price for English Language Learners

  • : the price at which a product can be sold at a particular time


Law Dictionary

market price

noun

Legal Definition of market price

  1. 1 :  the price at which a security is currently selling on the market

  2. 2 :  market value 1

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