What is price?

In a market, price is determined by both supply and demand sides and the market price is a price that will create a market equilibrium. This is right; however it is not completely right. Price is a relative term instead of an absolute term. Price connects all different goods and services and allows people to see and compare the values of all different goods and services. When we say an apple worths 1 dollar and a banana worths 0.5 dollar, we could say that the market believes the value of two bananas is equal to the value of one apple. Therefore price is a relative term. More generally, all measurements are all relative terms.