Re: Oil’s Swift Fall Raises Fortunes of U.S. Abroad
Fair Price is what the price of a thing ‘should be’ for a particular person. As you have given examples, the prices in the markets can be much higher or lower than what you think should be the price. So, essentially, fair price is subjective and differs person to person.
Fair Value is another name for market price. If I have something and I need to know how much it is worth, the best estimate of its ‘fair value’ is the market price (given an active market exists for that thing) of an identical (or similar) thing at that point in time. For you, the ‘fair price’ of that thing might be lower or higher than the market price but ‘fair value’ is the price at which several other buyers and sellers are willing to exchange it.