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How can it be intrinsic if it's determined by external factors like supply and demand? And if value is determined by cost, how come people still want it when it

How can it be intrinsic if it's determined by external factors like supply and demand? And if value is determined by cost, how come people still want it when it's free?

crimsonalucard 11y ago
>How can it be intrinsic if it's determined by external factors like supply and demand? Well it depends on how you interpret the word intrinsic. You were inquiring about how written law could influence value, I was responding by saying value isn't determined by some made up law written by humans, it's determined by laws intrinsic to economics: The law of supply and demand. >And if value is determined by cost, When did I say value is determined by cost? Cost is only an indirect contributor. Value itself is determined by supply and demand. >how come people still want it when it's free? If something is free, it doesn't change how much people want the product. Value does not influence Demand. It is the otherway around: Supply and demand influence value. Thus whether I charge a billion dollars or zero dollars for the oxygen you breath, you'll still want it as much as you did before regardless of the value.
- stefantalpalaru 11y ago
  > Supply and demand influence value. Thus whether I charge a billion dollars or zero dollars for the oxygen you breath, you'll still want it as much as you did before regardless of the value. The demand for air is much, much smaller than the supply, so by your logic it should have very little value. Yet it has a huge value and no cost. Now you see why I'm saying that market forces influence only the cost and not the value?
  - crimsonalucard 11y ago
    Air has very little value due to excessive supply. If I charged you 50 dollars for a bottle of air would you buy it? No you wouldn't. What if I restricted the supply of air by choking you? Give me $100 dollars and I'll let you breath for ten seconds. Suddenly 10 seconds of air is worth more than $50 dollars. You demand air to survive but how much you pay for air (aka the value of air) depends on me controlling the supply.
    - stefantalpalaru 11y ago
      You still don't understand the notions of value and price.
      - crimsonalucard 11y ago
        I understand completely. You're the one who lacks the capability to understand.

How can it be intrinsic if it's determined by external factors like supply and demand? And if value is determined by cost, how come people still want it when it's free?

crimsonalucard 11y ago

>How can it be intrinsic if it's determined by external factors like supply and demand? Well it depends on how you interpret the word intrinsic. You were inquiring about how written law could influence value, I was responding by saying value isn't determined by some made up law written by humans, it's determined by laws intrinsic to economics: The law of supply and demand. >And if value is determined by cost, When did I say value is determined by cost? Cost is only an indirect contributor. Value itself is determined by supply and demand. >how come people still want it when it's free? If something is free, it doesn't change how much people want the product. Value does not influence Demand. It is the otherway around: Supply and demand influence value. Thus whether I charge a billion dollars or zero dollars for the oxygen you breath, you'll still want it as much as you did before regardless of the value.

stefantalpalaru 11y ago
> Supply and demand influence value. Thus whether I charge a billion dollars or zero dollars for the oxygen you breath, you'll still want it as much as you did before regardless of the value. The demand for air is much, much smaller than the supply, so by your logic it should have very little value. Yet it has a huge value and no cost. Now you see why I'm saying that market forces influence only the cost and not the value?
- crimsonalucard 11y ago
  Air has very little value due to excessive supply. If I charged you 50 dollars for a bottle of air would you buy it? No you wouldn't. What if I restricted the supply of air by choking you? Give me $100 dollars and I'll let you breath for ten seconds. Suddenly 10 seconds of air is worth more than $50 dollars. You demand air to survive but how much you pay for air (aka the value of air) depends on me controlling the supply.
  - stefantalpalaru 11y ago
    You still don't understand the notions of value and price.
    - crimsonalucard 11y ago
      I understand completely. You're the one who lacks the capability to understand.