SEARCH CONTENTS

Custom Search

What is the meaning of Price? Concept, Definition of Price

ADS

What is: "price" ‒Definiciones and concepts -

1. Concept of price in the Wikipedia Encyclopedia

Usually called the price payment or reward assigned to obtain a good or service, or more generally, any goods.
Despite the fact that such payment is not necessarily made in money prices are usually referred to or measured in monetary units. From a general point of view, and understand money as a merchandise, can be that goods and services are obtained by barter, which, in modern economies, usually consists of Exchange by, or mediated through, money.
In the development of the economy, there has been debate prolonged about the relationship between price and value. Originally, the classical school considered that the price depended directly on the value, understood as the amount of work that is encapsulated in the production of a given good (see the value theory). Subsequently, based on the work of the marginalistas, it was conceived that the price depends on the utility given by each individual to the good or service in question. An opinion which is becoming of increasing influence from the work of Piero Sraffa, is that the price is determined in relation to a product or package goods Basic or full member (including work) that are fundamental to the production of goods of all kinds.
Given that the relationship between value (understood as the amount of these basic goods utilized in the production) and prices form the basis of the profit, analyze the relationship between the value and the price allows you to identify the price that may be successful for a company long term strategy.
Over time, prices can grow (inflation) or decrease (deflation). These variations are determined by the calculation of the price index, there are several as the called index of prices to the consumer (IPC), the index of industrial prices (IPI), etc.


2 Meanings of price


In this opportunity we will be emphasizing a masculine noun that, etymologically speaking, derives from the latin. To be more specific, it comes from Pretium. As well, the term that will give life to the presented article is none other than price. It is referred with the word in question to the monetary value that is assigned to any thing or product. In this sense, all goods and products that take place in the market have, rightly priced. It is the amount that the user (or client) must be paid in order to have him and thereby close the operation. For example, if someone goes to a clothes shop and want to buy one that costs $40, you must pay that sum to take her.
Apart from that not always payment is made using cash, prices usually measured in monetary units. If a general perspective is taken and refers to money as a merchandise, it is possible to interpret that both services and goods are obtained through barter. Meanwhile, in the so-called modern economies everything is based on the Exchange by means of money.
For its part, the term in question also has a specific definition in the right plane. In this area the price would be the monetary consideration in a number of contracts, which could include the sale or the lease, for example. In the field of legal, such price is money and nothing but money. Or if instead of Exchange silver will exchange another type of good, then the contract would not purchase and would be transformed into a swap.
On the other hand, the word that brings us here together has a second meaning. The same refers to the effort or suffering that can reach cost to get something. In this sense, could an example saying: Daniel paid a very high price for standing up to his colleagues in the company, the Directors decided to suspend it.
Synonym of price
Let us now review what are synonyms has previously addressed term: monte, cost, cost, value, amount, total, amount, sum, account, balance, pricing; risk, sacrifice, effort.


3. Definition of price

pre
The price is the value in currency which will be assigned to a good or service as appropriate. Meanwhile, when fixing a price, as well as the value that is in itself good or service, are determinants also for its definition issues such as time, attention, and effort which intended to that good or service for your procurement or production.
Sometimes, also may be that price today one, but other contingencies such as the passage of time, the use or the inability to get it because it is missing, will make that value granted is more or less still and despite the fact that we have been accustomed to pay him almost always at a nearly fixed value.
While the traditional way that prevails today to purchase a good or service implies the payment of a sum of money as we said more above, at other moments in the history and if investigates insurance today also can be lesser extent, barter was the most used method at the time of having to buy a product. I.e. for example, John sold a spice to Peter and this change was not x amount of money to Juan, but who paid with a fabric that John needed.
In a free market scenario price must be fixed from the law of supply and demand, then will be the application of this right on the part of consumers and the amount of offering producers, which will determine the price in question.
In the case of a monopoly the curve indicating the profit maximization of the company according to the costs of production will be ultimately mark the price of goods and services.
As a result of the time on the one hand and the ups and downs or cycles that may present or affect an economy, prices can grow (inflation) or decrease (deflation), in the meantime, these variations will be significant for consumers thanks to the measurement of the price index that perform some consultants or groups aimed at defending the rights of consumers.


4. Definition of price

Precio
Price, from the latin pretĭum, is the monetary value that is assigned to something. All products and services offered on the market have a price, which is the money that must pay the buyer or customer to finalize the operation.
For example: If the price of pants is $ 100, the person who wants to buy it must pay this figure to take the product. In the case of services, the price tends to be linked to a subscription, fee or rate since, in general, they must be paid on a regular basis. Cable TV service may have priced at 200 pesos a month, among other cases.
The price, at the conceptual level, expresses the product or service value in monetary terms. Raw materials, production time, technology investment and competition in the market are some of the factors that affect the price formation.
It is important to note that price also includes intangible values, such as the mark. A shirt made with identical materials can have very different according to the brand prices, since the consumer purchases with her various symbolic values.
The increase in prices over time is known as inflation, while the opposite trend is called deflation.
Beyond the monetary meaning, the concept of price is used to name to the effort, suffering or loss that serves as a means for something: "Sergio paid a heavy price for success in the professional world: gave him a heart attack due to stress".


5. Definition of price

Precio
The price given to things is a representative value both in quantity and quality to be able to form part of the system for the exchange of products and goods of society which is known as purchase - sale. The word price comes from the latin "Pretĭum" and the type of payment history to changed form and origin, the most common is a monetary payment, the relationship of buying and selling, it is common to associate the foreign trade the local currency or in some cases dependence. Cultures throughout the evolution of man have adopted the term to do correspondence to something that someone has to pay, the societies of prehistoric and ancient as the mayas and the incas were paying a price of sacrifice to the gods, mostly with human blood.

After the eradication of these beliefs in all over the world, is to limit the term to the economic and trade field, which includes ideas in which the price of product or service are vital for the development of the community. The price for a product is positioned according to the quality with which it is manufactured, its origin and of course and no longer important, the reputation and fame of the brand that sells it. Shirts there are many, but can cost 10 pesos of one trade mark or cost 100 pesos but be of a renowned brand, even if they are so similar that you hardly get the why the price difference between one and the other.
Moreover, prices placed a service range according to the attention that is given to the customer, service quality depends on the professionalism with which the server do it, similarly, referred to variety of prices in the services agreement of the place or the company offering it, for example, a massage in a spa without recognition session can cost 100 pesos, but in a spa at a famous hotel this same massage can have a price of 1000 pesos. Inflation is not more than the lack of control of you prices that fail to adapt to the budget of the people who work in exchange for a minimum wage.


6 Concept of price


The word price is used in the sense of effort or suffering that must pay to get something. For example: "Justice ordered me to pay the price of my freedom to repair the damage done to society" "Paid the price of my happiness to be with that man".
In economics, called the price, the value that must be paid to obtain a tangible or intangible product. It is usually fixed in money, which is a symbolic value attributed to the goods and services. In the middle ages, the price of products was set by the craft guilds uniquely, avoiding competition. Then the Industrial Revolution, and the beginning of series production, prices started to be established by the law of supply and demand, which means that a product will have higher price (will be more expensive) when there is high demand and little supply, and will be lower, or cheaper, in the opposite case. When prices rise, it is said that there is inflation, and if lower, is called deflation.
All values represent the satisfaction of human, ethical and aesthetic needs, cultural, or spiritual. The price is a value that things have, because through them man meets their needs. Today's materialistic society puts the money among the most important values, as the consumerism of the current times, requires own money to meet the growing material needs, imposed by technological advances, the advertisements, the need for group membership, etc. It is a society with investment on the scale of values, because even though the money is important, it should be well below the ethical and spiritual values.
The difference between the cost of production of a good and its selling price, determine the gain of the manufacturer.
In contracts of purchase sale price that the purchaser must pay is always in money, if it handed over one thing in exchange for another, it would be a swap.


7. Concept of price

Precio
In the contract of sale, the price is the economic value, i.e., the sum of money, necessary to obtain a good or service given. The competition between enterprises, together with the supply and demand for the factors of production, and goods and services, regulate the price and avoid abusive speculation of companies; and at the same time the price maintains the balance in the market.The world market is capitalist, and the money is considered something very valuable. However, often forgets that there are things that simply "priceless" as family, friendship and love (it is said that they are priceless because they are not bought or sold, but they have a huge emotional and spiritual value).
The figure resulting from the subtraction between the selling price of a service or product and the cost of the factors of production, necessary for its realization, is the gain of the entrepreneur.
In the market, when supply goes up and demand low, prices decrease; While, when demand rises and low supply, prices rise. The price is also an indicator of the trend in the consumption of the good or service offered; so while more people ask for that product, and greater amounts of consumers, the price will continue to grow.
But the price is not always paid in cash, can for example be exchanged goods or services between two persons, by way of barter.
Call price in addition, effort or sacrifice, which is the cause or consequence of the acquisition of a thing (for example: Enrique paid the price of his love for his sister, frowned upon from the cultural point of view, social exclusion), or to the same value (for example, one thing may have sentimental dearly, as memories of childhood).

SEARCH CONTENTS

Custom Search