Economic price theory asserts that in a free market economy, market price refers to the interaction between supply and demand: the price is set so that supply is equal to the quantity being supplied and demanded.
Some people are confusion with Economic and Economical but there is a huge difference. Economic is all about how money works, but something economical is a good deal. If you want an adjective related to economy, then economic is a term. If you want to describe a word that saves money, such as buying used textbooks, use affordable.
Example: – An example of economy pricing is the common food sold at grocery stores. The price of common goods is kept low due to the fact that they require very little marketing and promotional expenses.
Again an important question is, which money is most economical in the term of cost? Answer is In neoclassical economics, the value of a commodity or service is often seen as nothing more than bringing it into an open and competitive market. It is mainly determined by the demand for the commodity relative to the supply in a perfectly competitive market