I think right about now, I could really use a strawberry refresher from Starbucks.
My friend is clearly mad at me. She doesn't understand though how tough this week has been for me. I don't just pay for the drink. I pay for the experience. It gives me the chance to get away from work and connect with friends...express my social values. I wish she understood. Perhaps I should have reconsidered the opportunity cost. The water would have been free. The water wouldn't have costed $5, unlike the refresher.
I don't know, Mary. You just told me yesterday that you were going to work on limiting your spendings. You said that you were going to start focusing more on your needs, rather than your wants. Remember?
Yeah, that is all true. However, the use value of this beverage is important to consider. It will technically help me quench my thirst.
I mean, so does water...
I still can't believe you're paying for conveniency. I understand that this was an available option, but now you are losing $5 that could have gone into your savings.
Thank you so much!
I wonder what I should do now with the extra drink. My friend Sally doesn't want it and I really don't need it. As the law of diminishing marginal utility states, the usefulness of a product is limited by quantity possessed and at some point, the more you acquire, the less useful it becomes.
Order for Mary! Sorry about the extra drink. Our new barista accidentally added lemonade to the first one.
Now I'm worried that as a result of making this impulse purchase, I am sacrificing my financial values. After all, this drink is $5. At this rate, I'm never going to be able to afford a new car.
As for the utility purpose, I think that the car would better serve my needs. After all, the car I have now is a danger hazard, it's so old. And I mean, safety is an inner value of mine. Safety and security are my top priorities.
That's it! Moving forward, I'm going to start being more frugal with my money.
The paradox of value is an economic theory that explains the difference between dollar value and the personal value that the item has to us. In this case, the dollar value of the car is equivalent to the value that the item has to me. On the other hand, the Starbucks drink costs $5, but is definitely not valuable enough to me for me to continue paying for it regularly.