The price that we observe in the market is
A) the law of demand.
B) a substitute.
C) the money price.
D) the relative price.

Question

Quizplus · Accepted Answer

The price that we observe in the market is referred to as the money price, which is the price expressed in terms of money or currency. This represents the amount of money that buyers have to pay to purchase a good or service from the market. Option A is incorrect because the law of demand reflects the inverse relationship between the price of a good and the quantity demanded, and not the price itself. Option B is incorrect because a substitute is a good or service that can be used as a replacement for another good or service, and not the price itself. Option D is incorrect because a relative price is the price of a good or service relative to the price of another good or service, and not the price itself.

The Price That We Observe in the Market Is