Value v/s Price

["prakash chandrashekar" <prakash7uc@rediffmail.com>]

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Mr Max V,

VALUE is a very subjective quantity. It may not be possible to MEASURE
it and give it an objective value, the way we give to physical
dimensions or mass or time. A very important aspect is that length, mass
and time and scalar linear quantities.

you wrote - <<
Let us be clear about the defnition of money/currency
it is a mesuring tool to represent the *value* of goods
and services like Meter for length, Kg for weight.
>>

Value is a highly subjective non-linear quantity, if there a way to
measure it. One cannot have a universal quantity to measure it.

you wrote -
<<<We know from our discussions that this *value* is the
nothing but the energy/effort deployed to produce the
goods, that is the basis of demand supply interaction.
>>>

 As mentioned in the mud-pie problem, the worker has put in Energy to
create a mud-pie, but its value to me is ZERO. So, your definition above
fails in this case. And why a mud-pie, if i don't appreciate art, the
value of a mona-lisa to me is also zero, irrespective of how much energy
has gone into making the painting. If I don't eat meat, the value of
meat to me is zero.

But these things do have a "price". a price is what is important here.
It represents the value a general consumer is ready to grant the seller
in order to gain the value the good offers us. As economists have often
said, "trade happens because both sides benefit. I buy the soap because
the soap is worth more to me than the 10 rupees I pay the shopkeeper. He
sells the soap because the money is worth more than the soap to him."

To put it in terms of energy currency, the price of a good is the energy
a consumer is willing to give the seller in order to gain the VALUE
supplied by the good.

Hope that clarifies things, but please explain the issuing of the
currency and the way it would benefit the environment or society.

regards

Prakash





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