Question

Write the formula of market price?

Answer 1

Answer:

The market prices are basically labelled by shopkeepers to provide a discount to the buyers in such a way that,

Discount = Marked Price – Selling Price

Market price = Discount + Selling price

Discount Percentage = (Discount/Marked price) x 100

Market Price – Few Facts

1. The term market price refers to the amount of money for which an asset can be sold in a market.
2. The market price is temporary.
3. The market price of a product is dependent on factors such as demand and supply. Market price increases when demand increases and market price decreases when demand reduces.
4. The average cost of production could be more or less than the market price.

Normal Price

1. The normal price is permanent.
2. Normal price remains stable over a long period of time.
3. The average cost of production will always remain equal to the normal price.
4. Supply is an important factor in determining normal prices.