Market Price

The price at which a good or service can currently be purchased or sold. The forces of supply and demand decide how much an asset or service will cost on the market. The market price is the cost at which the quantity supplied and the amount demanded are equal. Consumer and economic surplus are determined using the market price. Customer surplus is the difference between the highest price a consumer is willing to pay and the actual amount they pay for the product: the actual market price. Producer surplus, commonly known as profit, is the sum from which producers profit from their sales at the market.