What is the price? The price is simply the value assigned to goods and services.
The price is tied to all aspects of life, everything we do and do not have a price, what we buy has a price, absolutely everything has a price, for example: If you work for General Motors as a mechanic, this offering his service as a mechanic to that company which has a price already assigned and that will be his monthly or paid remuneration.
When you are ready to buy an item in the market this has a value assigned for a price, but that price is not there just for being, in order to establish a price for an X product, this must have gone through several processes, suppose that our Product X is corn flour. Maize is extracted from agriculture, that is, from the primary sector of the economy, remember that this is the most important sector because in itself it allows us food and nutrition is the first need of humanity and the economy is no more than the way to manage resources to meet the needs of humanity or population.
Once the corn has been extracted and this has an X value or an X price due to the effort or work done by the farmer to plant and maintain it to the point of extraction, now the corn is sold at a price X to a refining company. corn that can be made with different products such as corn flour, after the company has transformed it into a finished product, it acquires a new value or a new price.
Now enters the third sector of the economy which is the marketing of the product that is nothing more than another thing to bring the product to market, now a supermarket is ready to buy the product and in doing so it acquires a new price X , which is very different from the initial value when the farmer simply extracted it, in some countries, as in the case of Venezuela, a product can be sold above all its cost price, that is, if the cost price is 30, you can Sell that product 30% more.
Remember that cost is everything we buy for sale, that is, if we buy a building and then sell it the price of the building represents a cost for us, instead if we use it for something personal this would be an asset for us.
Once explained the price transformation each time it passes through a different sector of the economy until the last, we can realize that the price is not more than the value that is assigned to a product for the work done by people that they processed it and a percentage of profit for the companies that facilitated that process.
Price plays an extremely important role in the economy, marks the value of our work and assigns our acquisition capacity, according to what we have in our pocket, what we can acquire.