Definition of Market Price | Current Value of Product or Service

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Market Price Definition

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

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
Market Price: Where Supply Meets Demand
What is Gross Margin?

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