The "purchase price" refers to the amount of money a buyer agrees to pay for a product or service. This price is typically determined by various factors, including the item's market value, demand, and any negotiations between the buyer and seller. In real estate, for example, the purchase price is the agreed-upon amount for a property, such as a house or commercial building. It is essential for both parties to understand this price, as it forms the basis of the transaction and can influence financing options and future investments.