Verðmiðinn er á rammanum.

The ending -inn is the definite article attached to the noun. Icelandic usually puts the at the end of the word instead of using a separate word like English.

• verðmiði = a price tag
• verðmiðinn = the price tag

So verðmiðinn is the definite nominative singular form.

Verðmiði is made up of:

• verð = price
• miði = tag, label, ticket, slip

So the word literally suggests something like price label or price tag.

Because the preposition á takes the dative case here when it describes location.

The basic noun is:

• rammi = a frame

Its forms here are:

• rammi = a frame
• ramminn = the frame, in the nominative
• rammanum = the frame, in the dative

Since the sentence means the price tag is located on the frame, Icelandic uses:

• á + dative → á rammanum

So:

• Verðmiðinn er á rammanum = The price tag is on the frame

No. Á can take either dative or accusative, depending on the meaning.

A very useful rule is:

• location / being somewhere → dative
• motion toward / onto something → accusative

So:

• Verðmiðinn er á rammanum = The price tag is on the frame
  
  • location → dative

Compare with something like:

• Ég set verðmiðann á rammann = I put the price tag onto the frame
  
  • movement onto it → accusative

This location-vs-motion pattern is very common in Icelandic.

Er is the 3rd person singular present tense of vera, which means to be.

So:

• ég er = I am
• þú ert = you are
• hann / hún / það er = he / she / it is

In this sentence, verðmiðinn is singular, so er is the correct form:

• Verðmiðinn er ... = The price tag is ...

This sentence has a very straightforward word order:

• Verðmiðinn = subject
• er = verb
• á rammanum = prepositional phrase

So the structure is basically:

• Subject + Verb + Place

That is very natural and common in Icelandic.

Icelandic does allow other word orders in some contexts, especially because of the verb-second rule, but this sentence is the plain, neutral way to say it.

That happens because the noun and the article come together in a way that produces -nn in writing.

The noun is:

• verðmiði

The attached definite article in this form is:

• -inn

When combined, you get:

• verðmiði + inn → verðmiðinn

This is a normal spelling pattern in Icelandic and not something unusual about this word in particular.

A few helpful pronunciation points:

• ð is like the th in this
• stress is usually on the first syllable
• the final -nn is pronounced as part of the ending, not as a separate extra syllable

A rough English-style approximation is:

• VERTH-myee-thinn

That is only approximate, but it helps as a starting point.

A rough approximation is:

• RAHM-mah-num

A few things to notice:

• stress is on the first syllable
• the mm is a real doubled consonant sound
• the ending -num is the dative definite ending here

Again, the approximation is not perfect, but it gives the general shape.

Yes. Verðmiði can often be translated as:

• price tag
• price label

Which one sounds best depends on context. If it is a hanging shop tag, price tag may sound more natural. If it is a sticker or printed label, price label may fit better.

So the Icelandic sentence itself does not force only one English choice.

Not always. In this sentence, on is the right translation, but Icelandic prepositions do not match English perfectly in every situation.

So it is best to learn:

• á in this sentence = on
• but in other expressions, á may correspond to in, at, or something less direct in English

That is very normal when learning prepositions in Icelandic.