The market price (under the legislation of the Russian Federation on taxes)Is the price of a product that has developed in conditions of free interaction of supply and demand in the market of homogeneous or identical goods in economically comparable conditions.
The market price is determined in accordance withThe Tax Code of the Russian Federation. When it is formed, allowance is made for allowances or discounts caused by the loss of merchantable qualities or other consumer properties, seasonal fluctuations in demand, marketing policy, the expiry of shelf life, the sale of samples or experimental models of goods, etc.
When determining prices in a market,attention of the transaction between persons who are not interdependent. The price determination is influenced by information about the transactions made with the same goods with the identical goods (the volume of goods supplied, the terms of delivery, payment terms, other factors that may influence the price increase or decrease are taken into account.
Functions of the market price:
The market price is established in three periods:
If the market develops such a situation, whensupply less demand for goods, then there is a deficit on it. Otherwise, there is an excess of goods on the market (a consequence of overproduction). A balanced (equilibrium) price allows you to regulate the quantity of goods on the market and achieve the marginal profitability of economic activity.
The market price is analyzed when comparing transactionsbetween interdependent and independent persons. In this case, the comparison can be conducted only for comparable transactions (made in the same financial and commercial terms).
The market price can only develop on the market perfect competition. This is impossible in the conditions of monopoly of individual sellers, price discrimination.
The formation of such a price is influenced by many factors (external and internal to the manufacturer of goods).
In the conditions of the market the price develops, first of all,under the influence of existing demand and supply for goods. Demand is the consumer's desire to purchase the goods backed up by financial means. The more goods that enter the market, the lower the price is set for them.
The offer is the quantity of goods thatsellers are ready to offer the buyer in certain conditions. If there is a decrease in demand due to an increase in prices for goods, then the supply, on the contrary, increases, which demonstrates the contradictory interest in the price of goods for sellers and buyers. For example, the market price of a bond (in contrast to a nominal one) is established only under the influence of demand.
A feature of the free market is thatat a certain level of supply of products, he himself strives for equilibrium. When the correspondence between supply and demand is achieved, a market (fair) price is spontaneously formed. But the equilibrium is not static, it varies under the influence of various factors.
The level of market prices is affectedelasticity - an indicator of changes in demand for goods, which occurs when the price of it changes. No less important factor is competition, forcing producers to change prices for the goods they offer. The behavior of consumers (the reaction of buyers of different segments to existing prices at the market) is also capable of leading to price changes. In addition to all this, it is necessary to take into account such an important factor as state price regulation.
