Principles of Economics by Carl Menger Chapter 3.2A - Difference in Importance for Individual Needs

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Why do goods have different values—even when they seem identical? In this video, we explore how value is measured through the lens of Carl Menger and Austrian Economics. You’ll learn that value doesn’t come from the good itself, but from how it helps satisfy human needs—and not all needs are equal.
Survival needs like food, shelter, and clothing are far more important than luxuries or pleasures. But even within essential needs, value changes. The first meal you eat when hungry is vital—it could save your life. But the fifth meal? It’s far less important, maybe even harmful. This decreasing importance explains why the more a need is satisfied, the less value each extra unit brings.
We break down how people constantly rank their needs, from life-saving essentials to minor comforts, and how this ranking affects the value they place on goods. This process happens daily, whether you're rich or poor, and it’s the reason goods don’t have fixed values.
You’ll also discover how this concept explains real-world choices: Why do people sometimes choose luxury over necessity once their basic needs are met? How do we decide between satisfying hunger or indulging in small pleasures?
If you’ve ever wondered why value shifts depending on context, or why the same good can be priceless in one moment and trivial in another, this video will give you the answers.

Questions Answered in This Content
-Why do identical goods have different values?
-How does the importance of needs affect value?
-What is the relationship between survival needs and luxury needs?
-Why does value decrease as a need is satisfied?
-How do people rank and prioritize their needs?
-What is marginal utility and how does it relate to value?
-Why isn’t value fixed for any good?
-How does decision-making influence the value of goods?
-Why do people sometimes choose comfort over necessity?
-How does subjective value shape economic behavior?

00:00 - Introduction to the Measure of Value
00:12 - The Nature of Value
00:57 - Importance of Needs
01:27 - Applying the Pattern to All Needs
01:44 - Ranking the Importance of Needs
02:16 - Constant Weighing of Needs
02:42 - Outro

#MeasureOfValue #SubjectiveValue #MarginalUtility