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This could rather be a philosophical question but would be curious to know the economist's POV and how these two (value of the product, total economic value of the product) correlate.

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    $\begingroup$ For trade to take place, the value to the seller should be below the price while the value to the buyer should be above the price. So the price of a product is often market clearing and matches marginal supply and demand. The total or average value is not a marginal calculation and should be higher than the price for those holding the product, as otherwise they would sell it. $\endgroup$ – Henry Dec 7 '20 at 13:08
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    $\begingroup$ @Henry you should post answers as answers $\endgroup$ – 1muflon1 Dec 7 '20 at 13:09
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    $\begingroup$ What do you mean by "value of a product measured in money"? The market price? The willingness to pay (WTP) of a (which?) consumer? Some average WTP? $\endgroup$ – VARulle Dec 7 '20 at 14:24
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No, the economic value and monetary value (price) are different concepts in economics.

Value of a good to an individual is usually defined as the utility derived from that good. Unlike prices, it is not necessarily same across individuals or even for the same individual with varying quantity of consumption. In fact, an important assumption on which many of the results of economics depend is that the value of good to an individual decreases with abundance.

The difference of utility derived and price paid is termed as consumer surplus. It is considered a measure of welfare because it measures the net gain from consuming that good.

On how the price amd value correlate: well price is just an outcome of the market forces. Valuation of the good by different economic agents in this market is the primary force here so naturally there is some correlation. However, some markets are controlled by the state (also an economic agent in such markets) to ensure such that it's price is actually much lower than it's value. For example, water, oxygen.

So value in terms of price is the outcome of many, many market forces. How you value it is one them.

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