A price increase refers to a rise in the cost of a product or service. It occurs when the amount that consumers are willing to pay for a good or service exceeds its current market price.
Related terms
Demand: Demand refers to the quantity of goods or services that consumers are willing and able to buy at various prices.
Equilibrium Price: The equilibrium price is the market price at which the quantity demanded by consumers is equal to the quantity supplied by producers.
Substitute Goods: Substitute goods are products that can be used as alternatives for one another. When the price of one substitute good increases, demand for the other substitute good may also increase.