how to differentiate price and value in finance?

Question

in finance discipline, we need to know what is 'price' and 'value'.

Answer 1

Services lose value after they are performed.
Products lose value after their used.

If you're very sick, in horrible pain and a doctor says " I can stop your pain and make you feel good, but i need $500. .? if you have the money- you are more likely to pay the doctor before he performs.....but, if the doctor gives you a cure, stops the pain and makes you feel better now, then sends you a bill in the mail 8 weeks later for his services, you're less likely to pay up.

Answer 2

Price is What is determined by you! Value is what you think the items really worth. Most sellers price their items at less than what they think the true value of an item is. They do this cause they know most people can't afford to pay the value of an item cause people are not working at there value's worth. I mean that employers don't pay people what they are worth cause that would put the employer out of business. Employers pay employees what they can afford. Good employers give all sorts of benefits to good workers to show that they do value their workers and to compensate cause they can't afford to pay the employees what they are truly worth. Now do you understand difference between value and price?

Answer 3

Price is what an item is sold for, value is what an item is worth. As a seller, you want to make sure that you maximize price; as a buyer you want to maximize value.

Answer 4

price - what you actually paid for it
value - what it is worth to you now