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The value of a commodity or service expressed in terms of money is called price. A price is the amount paid for a specified quantity and quality of any good or service including factor services. Thus wage rate is a price paid for the service of a labourer. Interest rate is the price paid for the use of a certain amount of money for a specified period of time. Similarly, rent is the price of land used in production and profit is the price paid for the service of an entrepreneur.
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