B0ycey wrote:I guess it does as value is down to necessity. So yes, it does become more valuable the more my life depends on it as it happens.
Good so far.
B0ycey wrote:But the price is still down to demand.
Correct.
B0ycey wrote:If I have a thousand saleman offering a bottle of water at the same time, the price will shorten considerably regardless if my life depends on it or not.
Sure, but price is determined by market value which is the relation between supply
and demand, your necessity is but a really high demand and the 1000 salesman is a high supply, so the price
could be lower, but only because of these salesman competing for your business as a rich dying man in the desert who needs water. However, lets say these 1000 salesman know how high the demand is (that is, your desperation) and the lowest price ended up being $1500.00 for a bottle of water, would you still pay it if you were dying of thirst?
Of course you would, so price is related to value, if the seller knows how much you
value the water, they will likely adjust price accordingly,
for price is a market indicator of what people typically value products at. Which is what my definition argues.
The value of water is based on YOU as the potential consumer, you impute value based either on needs or desires.
However, price is a measurement for value, generally speaking, in the broader market.
Indeed, that value is not fixed purely to necessity can be easily demonstrated:
Can you biologically survive without your wife or child? Yes, thus it is not biologically necessary to have them, so according to your definition such persons would have ZERO value.
Obviously that is horseshit.
Value is the level of importance that your attribute to something, and in the market, that is measured in terms of price.