Price is the amount of money that you need to pay to buy a product or service. It reflects the value of that item in the market and can change based on demand and supply. For example, if many people want to buy a new smartphone, the price may go up. Conversely, if there are too many smartphones available and not enough buyers, the price might drop. Understanding price is important for both consumers and businesses. Consumers want to get the best deal for their money, while businesses aim to set prices that attract customers while still making a profit. This balance is crucial in a competitive market.