Final answer:
The price in the financial markets context is known as the fair market value. It reflects the rate of return for suppliers and the cost for demanders, while the quantity is demonstrated by the money flow between them. The valuation of assets like mortgage loans is based on what others in the market are willing to pay.
Step-by-step explanation:
The price that would be received to sell assets or paid to transfer in an orderly transaction between market participants at the measurement date is the fair market value.
In the context of financial markets, the price refers to the rate of return or the interest rate that is either received by those who supply financial capital (e.g., through savings or investments) or paid by those who demand financial capital (e.g., borrowers seeking loans).
The quantity in these markets is represented by the flow of money from suppliers to demanders.
In the case of assets like mortgage loans, the present value can be estimated by what another party is willing to pay in the market, which can occur directly or through secondary markets such as those where loans are sold and resold between financial institutions.