Q.Distinguish between Value and Price.

Price is value expressed in money — the sum of money needed to purchase one unit of a good or service.

Explanation

Every economic good has value, that is, worth in exchange. When this value is measured and stated in terms of money, it is called price. Thus price is the money value of a commodity. For example, if one kilogram of rice can be exchanged for forty rupees, the price of rice is forty rupees per kilogram. Price is determined in the market by the forces o …

Utility is the want-satisfying power of a commodity or service.

Explanation

Utility means the capacity of a good or service to satisfy a human want. When a commodity satisfies a want, it is said to have utility. For example, medicine has the utility to cure illness and food has the utility to satisfy hunger. Utility is subjective (it varies from person to person), it has nothing to do with usefulness or morality, and it is the basis of demand — a consumer buys a good …

Price is the money value of a commodity, the amount of money for which one unit of a good or service is bought or sold in the market; it is value expressed in terms of money.

Meaning

Price is the exchange value of a good or service expressed in terms of money. While value is the worth of a good in terms of other goods, price measures that worth in money, so price is the money a buyer pays and a seller receives for one unit of the commodity.

For example, if one kilogram of rice is sold for forty rupees, then forty rupees is the price of one kilogram of rice. Price is determined in the market by the forces of demand and supply.

…