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In economics, the term 'price' of a good is best understood as its:
AValue in use
BValue in exchange
CSentimental value
DOpportunity cost
Answer & Solution
Correct answer: B. Value in exchange
1. Price expresses the value of a thing in relation to money, i.e. the quantity of money for which it will be exchanged.
2. This is precisely the concept of value in exchange (exchange value).
3. Therefore price corresponds to value in exchange.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit I "Meaning and Types of Markets", p.1_
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