The value of a commodity is the rate at which it is exchanged for another commodity in the market. In all the present – day economies money is used as a medium of exchange. We exchange goods for money (sale) and exchange money for goods (purchase). The value of a commodity expressed in money units is called price. We buy things with money. For buying a commodity, we pay a certain amount of money. Price is the amount of money that we pay for purchasing a commodity. Every things has a price in the market irrespective of whether it is a good or a factor of production. Whatever is bought and sold has got to have a price. But different goods and services have different prices. In this section, we shall explain why goods are priced and why different goods are sold at different prices.SUBMIT ASSIGNMENT NOW!