Economic Value

Economic Value is the worth of a good or service as dependent upon people’s preferences as well as the tradeoffs they tend to make given their own scarce resources, or the worthiness the market places on an item. Economic value is usually represented by the maximum amount a consumer is willing to fund an item inside a free market economic climate, or the amount of time an individual may sacrifice waiting to have a government-rationed good inside a socialist economy. In contrast, market value symbolizes the minimum volume a consumer pays. Economic value as a result often exceeds industry value.