The price is the value in currency that will be assigned to a good or service as appropriate. Meanwhile, when setting a price, in addition to the value that the good or service has in itself, issues such as the effort, attention and time that have been allocated to that good or service for its definition will also be decisive for its definition. achievement or production.
Sometimes, it may also be that this price today is one, but other contingencies such as the passage of time, use or the impossibility of obtaining it because it is missing, will cause that value that is granted to be higher or lower, even now. Despite the fact that we have been used to paying it almost always in an almost fixed value.
Although the traditional way that prevails today to acquire a good or service implies the previous payment of a sum of money as we said above, at other times in history and if it is investigated for sure that today they can also be found although in lesser measure, bartering was the most used method when having to buy a product. That is to say, for example, Juan sold a spice to Pedro and in return he did not give Juan x amount of money, but he paid it with a cloth that Juan needed.
In a free market scenario, the price will be set based on the law of supply and demand.It will then be the request for that good from consumers and the quantity offered by the producers, which will determine the price in question.
In the case of a monopoly, the curve that indicates the maximization of the company's profits as a function of production costs will ultimately determine the price of goods and services.
As a consequence of time on the one hand and the ups and downs or cycles that may present or affect an economy, prices may rise (inflation) or decrease (deflation), while these variations will be appreciable for consumers thanks to the measurement of the price index carried out by some consulting firms or groups aimed at defending the rights of consumers.
