Price is the amount of money required to purchase a good or service. It is determined by various factors, including supply and demand, production costs, and market competition. When demand for a product increases, prices may rise, while a surplus of goods can lead to lower prices. In economics, price plays a crucial role in signaling to consumers and producers. For example, when the price of gasoline increases, consumers may choose to drive less or seek alternative transportation. Similarly, higher prices can encourage manufacturers to produce more of a product to meet demand.