Price is considered which type of variable?

Price is commonly classified as a dependent variable, particularly in the context of economic models and analyses where it is responsive to changes in other factors or variables, such as supply and demand. In most economic scenarios, the price of a product or service is influenced by various independent factors, such as production costs, competition, consumer preferences, and overall market conditions.

For instance, if consumers are willing to pay more for a good due to increased demand, the price will adjust accordingly. Therefore, since price reacts to the fluctuations and changes in these other factors, it is regarded as dependent.

While price could also be considered independent in very specific contexts (like setting a price in a pricing strategy model where it drives other factors), the more general understanding in relation to market dynamics is that it primarily acts as a dependent variable that reflects market conditions. This aligns with common practices in statistical modeling, where the dependent variable is often the focus of analysis for its relationship with independent variables.