Exchange Value

Exchange value refers to the worth of a good or service when traded in a market, as opposed to its intrinsic value or usefulness. It is the price determined by supply and demand, reflecting how much of one item people are willing to give up to obtain another. For example, if a loaf of bread is valued at $2, that is its exchange value. This concept helps explain how market forces influence pricing and how different items can be compared in terms of what people are willing to exchange for them.