The Subjective Theory of Value states that it is not the labor, materials, or any other inputs used in the production of a good that determines its value, but it is simply any value that an individual places on it according to how that good helps them achieve their ends. This contrasts with the Labor Theory of Value. The subjective theory of value holds that the only “right” price for a good is the price at which it trades in the free market through voluntary transactions. Simply, even if a good costs X amount of currency to produce, say 100, and the maximum value that any one individual subjectively placed on this good was 75, the market would be better off if the good was not produced. This also provides a mechanism for making sure utility is maximized, as consumers can, by labor theory standards, overvalue and overpay for good, but subjectively, still be benefiting due to the value that they have attached to that good, free from the costs of inputs used in the good’s production. So, in short, Subjective Theory of Value states that you, the reader, know the value of everything in the world, without error. However, you only know the value of these goods as they apply to you. Insulin is useless to a non-diabetic, so it has little to no value. However, this life saving solution is of much value to those who need it. Which consumer is right? They all are.