What does the term "price" refer to in economics?

In economics, the term "price" specifically refers to the amount of money paid for a good or service. This definition captures the transactional nature of price, as it is the monetary value exchanged between buyers and sellers in a market. Price serves as a critical signal in the economy that helps to allocate resources efficiently; it indicates scarcity, demand, and supply levels. When consumers make purchasing decisions, they often do so based on the price of a product, which influences their demand. Likewise, sellers consider price in their strategies, as it impacts their profitability and market competition.

The other options touch on concepts related to value and cost but do not accurately define "price." For example, while total value and perceived worth are important in understanding how consumers view products, they are broader concepts that encompass more than just the price point. Additionally, the cost associated with production is a separate consideration that informs pricing decisions but is not synonymous with the price itself. Thus, the definition that best captures what "price" means in an economic context is the amount of money paid for a good or service.