The word "物美价廉" is formed by joining two noun-adjective phrases: "物美" (物 meaning "object" and 美 meaning "good") and "价廉" (价 meaning "price" and 廉 meaning "cheap"). Each phrase follows a consistent grammatical structure where a noun is directly modified by an adjective, and their combination creates a compound that succinctly denotes an item with good quality and low cost.