The term "market price" refers to the current price at which a particular good or service can be bought or sold in a marketplace. This price is determined by the forces of supply and demand, meaning it can fluctuate based on how many items are available and how many buyers are interested. Market price is important for both consumers and producers. For consumers, it indicates how much they need to pay for a product, while for producers, it helps them decide how much to produce based on potential profits. Understanding supply and demand is crucial for grasping how market prices work.