Prices

Prices are the amounts of money required to buy goods or services. They reflect the value people place on these items and are influenced by factors like supply and demand, production costs, and market conditions. When demand for an item is high and supply is limited, prices tend to rise. Conversely, if an item is abundant and demand is low, prices tend to fall. Prices help allocate resources efficiently by signaling what products are in demand, guiding producers on what to make, and helping consumers decide what to buy based on their budgets.