Although the businessman's primary concern is with his specific price policy, he must pay heed to the general price level, which is a composite price of goods and services in the aggregate. The general price level reflects changes in the economic forces associated with demand and supply, as well as changes in the value of money. In turn, changes in the general level of prices indicate changes in the value of money. A change in a particular price, while other prices remain substantially the same, is due presumably to changes affecting that particular commodity. But when the general level of the aggregate of prices moves, it is safe to assume that the cause was a change in the value of money. A change in the general level of prices means an opposite change in the value of money. It is possible for individual prices to move out of line with the general price level, if the forces of demand and supply for that item outweigh the factors operating in the economy that are influencing price at that time.
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