Answer to Question #57908 in Other Economics for jeena
what exactly is observed price? and the reasons for it to go higher or lower. some examples for observed price too..
Observed price is the price, that is collected or reported for a sampled product or item. We may predict one price, for example, we can predict, that apples will cost $2 per kilogram next month, but measure (or observe) another, for example, $2.3 per kilogram. There may be many reasons, why the observed price is higher than the predicted, for example, the change in predicted weather, the development of production technology etc.