Earlier quoted context omitted.
Look into producer and consumer surplus. In any exchange, you'll tend to find that the value of the items exchanged are worth more to the receiving party than the giving party. It's practically essential to agreeing to a trade. The consumer surplus is the excess value the buyer receives. Think "I would have paid €5 for that drink right now, but they only charged me €2!" The producer surplus is how much more someone p…
So you're saying that this person was implying that even though the price is 0 euro, the consumer surplus is greater than 100 euro? I can understand this reasoning, so thanks for explaining it. I'm not sure I believe that consumer surplus can be measured outside of controlled psychology experiments, since it's only speculation and talk is cheap. I guess I always thought that the value (or worth - these are the same,…
But the point is that you've found an equilibrium in the system with the current price, current suppliers, and current customers. There are customers would would have happily paid more. There are people who WOULD have bought the good if it cost less, but it doesn't so they didn't. There are people who are happily supplying it and making mad bank. There are people who are supplying it and making a razor-thin margin. There are people who WOULD supply it if the available price were higher, so they're not supplying it right now. The price is an efficient equilibrium point, but it's not the global arbiter of value.