Traditional Locational Marginal Price (LMP) consists of Energy, Congestion and Loss price. Accurate calculation of LMP is highly critical in ensuring smooth operation of the electricity market. LMP varies with respect to parameters such as operational, line design and generator design. The study on sensitivities of LMPs with respect to constraints along with the price helps in efficient running of the system. In this paper, the impact of different constraints on LMP is evaluated. The LMP at each bus is determined by using AC Optimized Power Flow. The impact of generator, transformer, load and transmission parameters on the LMP values is studied on IEEE WSCC 9 bus system. This paper helps to investigate the factors affecting the LMP and their impact on it. Power World Simulator is used for simulation and the results show the desired operating points of the system which helps to improve the system's economic operation. © 2016 IEEE.