A buyer and seller agree upon the price of an item. What type of price is this known as?
A.
Bid price
B.
Spot price
C.
Bid price
D.
Market price
D. Market price
The correct answer is D. Market price.
The correct answer to the question is not provided in the options given. The type of price that a buyer and seller agree upon is known as the "Negotiated price" or "Agreed-upon price."
To determine this answer, you can understand the different types of prices and their definitions:
1. Bid price: This is the price at which a buyer is willing to purchase an item in a competitive bidding process, such as an auction.
2. Spot price: This refers to the current market price of a security or commodity for immediate delivery. It is the price at which a buyer is willing to purchase an item on the spot, in cash or for immediate delivery.
3. Ask price: This is the price at which a seller is willing to sell a security or commodity.
4. Market price: This refers to the current prevailing price at which an item is bought and sold in the market. It is determined by supply and demand factors.
In the given options, none of them correctly represents the type of price agreed upon by the buyer and seller.