The average price is a measure that represents the central value of a set of data. It is calculated by adding up all the values and dividing them by the total number of values in the dataset, providing an indication of the typical or expected value for the group as a whole. In other words, it's the sum of all the numbers divided by how many numbers there are. This can be useful when comparing prices across different items or categories to determine which is generally more expensive or less expensive based on the average price.