The price index of the proportion of goods with currency exchange, or that the price is the value of the currency performance. The price is the transformation of the form of the exchange value of commodities in the circulation process. In economics and business process, the price is a monetary form of expression, the number of goods, services and assets, the value entered into. Microeconomics into the re-allocation process of resources between the demand and suppliers, the price is one of the important variables.
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The price of the everyday applications of modern society, the price generally refers to a transaction, the buyer need to pay a price or payment.
An economic point of view, the price refers to both buyers and sellers on the sale of goods entered into the exchange ratio, for example consumer price index: If the process of the sale, the commodity A in exchange for two units of commodity B, the price of one unit of commodity A will be two units of commodity B, while the price of a unit of commodity B, compared with half a unit of commodity A Modern society, the exchange of money for the mainstream way of trading, buyers and sellers which side will pay in money, commodity prices will be able to use money as a unit, commodity prices have also the same units and be able to compare.
Attention to a commodity price, rather than the use or the traditional concept of “value” is not necessarily a direct relationship. In an economic point of view, the price of a commodity depends on the supply and demand of goods, commodities A, even in the use of commodity B, but also because of the small proportion of their supply and demand, higher than that of commodity B price.
The price is a subordinate to the value determined by the value form of monetary value. Changes in the value of the price movements of the inner, the dominant factor is the basis of price formation. However, due to commodity prices is not only determined by the value of the product itself, the price is determined by the value of the currency itself, and therefore changes in commodity prices do not necessarily reflect changes in the value of the goods, for example, the constant value of the goods, the value of money The changes will lead to changes in commodity prices; Similarly, changes in the value of the goods does not necessarily will lead to changes in commodity prices, for example, changes in the same proportion of the value of the goods and monetary value in the same direction, the change in the value of the goods does not cause changes in commodity prices. Therefore, the commodity price performance value, but there are still not consistent with the case of commodity prices and commodity value. Conditions of simple commodity economy, commodity prices with changes in market supply and demand, directly to fluctuate around its value; in the capitalist commodity economy under the conditions of competition between departments and the average profit, commodity value into production price commodity prices with changes in market supply and demand around the production and price fluctuations.