PURCHASING POWER: In general the quantities of goods and services that can be bought with a given amount of money. The notable feature of purchasing power is that it declines as prices rise. In particular, inflation is the number one nemesis of purchasing power. When inflation gives higher prices, purchasing power falls. Be careful, though, that you don't get too caught up in the purchasing power of just a single dollar. The real question is not how much stuff one dollar can buy, but how many dollars you have. In other words, while the price of a brand new car might have been $10 when you were a kid (in the good old days), the average annual income was also $20. That's the same purchasing power as a $10,000 car price and a $20,000 income.

     See also | real | nominal | money | price level | inflation | cost of living | living standard | store of value |

PURCHASING POWER, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: October 3, 2023].

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The ability of buyers or sellers to exert influence over the price or quantity of a good, service, or commodity exchanged in a market. Market control largely depends on the number of competitors on each side of the market. If a market has relatively few buyers, but many sellers, then limited competition on the demand-side of the market means buyers tend to have relatively more market control than sellers. The converse occurs if a market has many buyers, but relatively few sellers. This is also termed market power.

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