Price

Price means the amount of money needed to buy a good or service. In simple terms, price tells you how much something costs. Price is important because it affects what people buy, how much businesses earn, and how resources move in the economy. When prices rise, consumers may buy less. When prices fall, consumers may buy more. For example, if a cup of coffee costs $4, then $4 is the price of that coffee. Price is not the same as value. Price is what someone pays, while value is what someone believes something is worth.