Price setting is the process of determining the cost of goods and services. It is a critical part of the business cycle, as it helps to ensure that the company is able to make a profit while still providing customers with competitive prices. The term 'price setting' can also refer to the process of setting prices for products or services in a particular market. The three-letter TAG associated with price setting is P-S-T, which stands for Price Setting Theory. This theory states that prices are determined by the interaction between supply and demand, as well as other factors such as competition, production costs, and consumer preferences.