what is the theory of price 
the theory of price is an economic theory that states that the price for a specific good or service is determined by the relationship between its supply and demand at any given point prices should rise if demand exceeds supply and fall if supply exceeds demand understanding the theory of pricethe theory of price also referred to as price theory is a microeconomic principle that says the market forces of supply and demand will determine the logical price point for a particular good or service at any given time in a free market economy producers typically want to charge as much as they reasonably can for their goods and services while consumers want to pay as little as they can to obtain them market forces will cause the two sides to meet somewhere in the middle at a price consumers are willing to pay and that producers are willing to accept 