What term describes the economic value determined by both suppliers and consumers, reflecting resource costs?

• A. Value
• B. Price
• C. Cost
• D. Worth

Answer: (B)

Price is the monetary value that emerges from the interaction of supply and demand in the market. It reflects the costs of resources used to produce the good and the value buyers place on it, balancing what producers need to cover those costs with what consumers are willing to pay. Value and worth can be subjective or broader notions of usefulness, while cost is the producer’s expense to make the item; neither alone captures the market-determined amount that coordinates production with consumption.