What is an example of a subjective value?

The estimated value of a unique art piece is an example of subjective value because it is determined by individual perception and opinion rather than an objective criterion. Each person’s view on the worth of that piece may vary greatly based on personal taste, emotional connections, and market trends that aren't strictly measurable. This individual valuation often reflects the buyer's willingness to pay based on factors such as artistic significance, rarity, and demand within a specific culture or community.

In contrast, the cost of raw materials refers to the tangible, objective costs needed to produce a product and can be determined through established pricing models and market values. The price of a company's stock, while influenced by subjective perceptions of its potential, is ultimately determined by market forces and investor sentiment that can be quantified based on supply and demand. The interest rate on an investment is a financially defined figure dictated by economic conditions, market interest rates, and governmental policies, making it objective as well. Thus, subjective value is best illustrated by the estimated value of unique works of art, which varies significantly from person to person.