How is absolute price defined?

Absolute price is defined as the dollar amount of a good or service. This concept refers to the specific monetary value assigned to a product without considering other factors such as inflation or the price of related goods. It is the straightforward price that consumers see and can directly use to make purchasing decisions.

Understanding absolute price helps in understanding market transactions, as it provides a clear quantifiable measure of cost. This contrasts with other concepts like adjusted prices, which take into account inflation, or relative prices, which assess value in comparison to other goods and services.