A price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services. A price is influenced by both production costs and demand for the product.

In some circumstances, cigarettes have been used as currency, for example in prisons, in times of hyperinflation, and in some places during World War II.

For instance the price of inflation-linked government securities in several countries is quoted as the actual price divided by a factor representing inflation since the security was issued.

“Price” sometimes refers to the quantity of payment requested by a seller of goods or services, rather than the eventual payment amount. This requested amount is often called the asking price or selling price, while the actual payment may be called the transaction price or traded price.Likewise, the bid price or buying price is the quantity of payment offered by a buyer of goods or services, although this meaning is more common in asset or financial markets than in consumer markets.

Supply and demand, and hence price, may be influenced by other factors, such as government subsidy or manipulation through industry collusion.

This essentially states that the cost difference between the locations cannot be greater than that representing shipping, taxes, other distribution costs and more.