Subjective theory of value

The subjective theory of value suggests that the worth of a good or service is determined by an individual's personal preferences and how much they personally desire it, rather than inherent qualities or production costs. In other words, value varies from person to person based on their preferences, needs, and circumstances. For example, a glass of water might be highly valuable to someone stranded in a desert but less so to someone with abundant supply. This theory highlights that value is not fixed; it’s shaped by individual perceptions and choices.