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# Value in Use

## Definition

The utility or usefulness of a commodity to satisfy human wants or needs, which may bear little relationship to its power to command other goods in exchange.

## Source Chapter

Book I, Chapter 4

## Context

Smith introduces this concept as the first of two meanings of "value," establishing that usefulness alone does not determine exchange value, as demonstrated by water's high utility but low exchange value compared to diamonds.

## Economic Domain

Consumption

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