Market Price Definition

Market price is the current value of a product or service based on the balance of supply and demand.

Market Price Expanded Definition
An accurate determination of the market price is important for sales and gross profit. As demand increases, and the supply runs low, the market price goes up.

In other words, you may be able to raise your prices without sacrificing sales and customer goodwill. Market price is sometimes skewed due to government controls.

Related Article
What Is Market Price?

Last Updated By

Rachel Blakely-Gray | Apr 12, 2023

Check out Our Accounting Software

See a Demo

Back to Top