Title: Value (economics) - Wikipedia
Headings: Value (economics)
Value (economics)
Contents
Overview
Explanations
Connected concepts
See also
References

Content: The difference between the value to the consumer and the market price is called " consumer surplus ". It is easy to see situations where the actual value is considerably larger than the market price: purchase of drinking water is one example. Contents
1 Overview
2 Explanations
3 Connected concepts
4 See also
5 References
Overview
The economic value of a good or service has puzzled economists since the beginning of the discipline. First, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods that can be exchanged. From this analysis came the concepts value in use and value in exchange. Value is linked to price through the mechanism of exchange. When an economist observes an exchange, two important value functions are revealed: those of the buyer and seller. Just as the buyer reveals what he is willing to pay for a certain amount of a good, so too does the seller reveal what it costs him to give up the good.