Red price - what does this expression mean?

The price of goods is a universal regulator of producer-buyer relations. This is the same indicator, through which the product will be purchased (or not purchased) and, accordingly, the seller will be able or will not be able to carry out its activities.

The correct choice of price is the guarantee of the success of the financial policy of the commodity producer. In world trade practice, enough information is accumulated about the basic principles of pricing and the factors affecting them.

On what does the price depend?

Consider the main factors that influence the formation of market prices. There are several of them:

1. The number of market subjects (sellers and buyers). The larger their number, the smaller the fluctuation of prices.
2. Independence of these subjects. As a rule, the less sellers or buyers in the market, the more opportunities they have to influence the formation of prices.
3. Variety of product range. The more it is, the more stable the position for certain types of products.
4. External constraints (temporary fluctuations in the supply-demand ratio, state regulation, etc.).

How is the price formed?

The real price is the number of units of a certain currency that the buyer must give to the seller. The basic rule here is this: the more inaccessible (exclusive) the product, the more expensive it is, and the less willing it is to buy. The shortage of certain goods for consumers forms a higher price for each unit, which automatically reduces demand and calls for it.

Fluctuations in prices for any groups of goods affect their release. When the price increases, the release and sale of this product become attractive to a large number of manufacturers. As a result of the saturation of the market, prices are falling. Some producers are forced to withdraw from the game.

Thus, prices force manufacturers to regulate the quantity of produced goods. This is due to such a phenomenon as demand.

Demand as a concept

Every person needs a variety of material goods. The absolute majority of them he does not create on his own, but comes after them to the market. But to purchase the desired buyer must have a certain amount of money. Needs confirmed by the ability to pay for the right, and there is demand.

Thus, demand characterizes the relationship between the mass of goods that people are willing to pay for and their price. That is, demand directly depends on price. When the price of the goods changes, the seller must calculate how this will affect the demand and, accordingly, the volume of sales.

The mechanism of price formation is based on the clash of interests of sellers and buyers. This largely spontaneous process operates continuously and is characteristic of any market economy.

Another component of this mechanism is a proposal, that is, the volume of output that manufacturers are currently ready to offer to the consumer at a certain price. The fact that the result of a "meeting" of supply and demand is just the real price of a good or service was probably heard by everyone.

Red price - what is it?

The market price or the price of equilibrium is precisely the one at which the goods will be exchanged for money-no more or less. Is the product always offered for sale at a price close to real? How to assess the "fairness" of the requested amount? It's no secret that the rise and fall in demand (and with it, and prices) for the same goods affects a variety of factors - from seasonal fluctuations in demand to leaked information about the poor quality of the product.

It is when trying to subjectively evaluate the "legitimacy" of the seller's appointment of a fee for a product or service and probably the term "red price" was born.

What does it mean? Most people have heard him for their lives many times, and "in everyday life" everyone roughly represents what they are talking about. But let's see how this concept is interpreted by dictionaries.

You give an encyclopedia!

The economic dictionary treats it as the largest, i.e., the highest price that can be paid for any product. With it the dictionary of synonyms and the phraseological dictionary are in common.

At the same time, according to the definition given by the legal dictionary, the term "red price" has two meanings at once. The first of these is the price that will suit both parties to the transaction - both the seller and the buyer. The second value is the amount that the buyer calls in response to the inflated (in his opinion) seller's requirements.

It is in this last meaning that the concept of "red price" has taken root both in everyday life and in Russian literature. "Yes, he has a red price - a penny!" - they usually talk about cheap or low-quality goods, which they try to sell at exorbitant prices.

This concept is found precisely in this meaning in the works of Russian classics, for example, in "Dead Souls" by NV Gogol or in "Peter the Great" by AN Tolstoy.

Thus the expression came into use. And now it is used most often in this sense.