The difference between value and price is given here. In culture, the term value is often confused with price, especially when it comes to buying and selling
products. However, they are terms that we should not use synonymously.
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Value
It is the quality of a subject or object. A value is like the physical or psychological as well as tangible characteristics of an object. The added values are attributed to an object by an individual or a social group modifying their behavior and attitudes towards the said object.
It is a quality that gives things, people, or events an estimate, either negative or positive.
The existence of a value is the result of the interpretation that a person makes of the desire, importance, beauty, and usefulness of the object. The value of an object is attributed to the subject according to personal criteria and interpretations as a result of their learning, their experiences, ideas, and natural beliefs of the subject.
Price
It is known as the payment price assigned to obtain a good or service, in general, to any type of merchandise.
Prices can not only refer to monetary units, but they can also refer to barters. For law, the price is the monetary consideration of a series of contracts of sale or lease, also, for law, the price is only considered in money and not in goods.
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Difference between Value and Price
- The relationship between price and value has been a matter of debate for the economy, according to the old school the price depends directly on the value, this being understood as the amount of work necessary to produce the merchandise.
- According to marginalists and current considerations, the price depends on the utility that an individual assigns to the good or service.
- Value is also understood as the amount of basic merchandise used in production.
- Value is the importance given to a good or service in a personal way.
