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Market price is an economic concept with commonplace familiarity; it is the price that a good or service is offered at, or will fetch, in the marketplace; it is of interest mainly in the study of microeconomics.
Other measures of value
Market price is one of a number of ways of establishing the monetary value of a transaction; there are others, such as historical cost; the resource cost of the good or service; the discounted present value, and others.
Classical economics
Many second order factors bear on market price in practise, not least the availability of market information to suppliers and potential purchasers.
In classical economics, the market price of a good or service is established in relation with demand, and in inverse relation with supply, which is to say the market price decreases as supply increases; increases as supply decreases; increases as demand increases; and decreases as demand decreases. The actual market price will establish a particular price point, valid for a short period which is the meshing of current demand and supply (see supply and demand).
See also
"Market price"