Mainstream (bourgeois) economics sees price of a commodity as the product of the intersection of its supply and demand and nothing else. There are certain problems with this theory. Mainly, it is tautological because it essentially says that the price of a commodity is what the consumer is willing to pay for it.
Marx posited that the exchange value of a commodity is determined by the sum of natural resources and the socially necessary labour that went into its production. The price that comes out of this is sort of a baseline price and fluctuations in supply and/or demand cause the price of the commodity to fluctuate around this baseline.
Mainstream (bourgeois) economics sees price of a commodity as the product of the intersection of its supply and demand and nothing else. There are certain problems with this theory. Mainly, it is tautological because it essentially says that the price of a commodity is what the consumer is willing to pay for it.
Marx posited that the exchange value of a commodity is determined by the sum of natural resources and the socially necessary labour that went into its production. The price that comes out of this is sort of a baseline price and fluctuations in supply and/or demand cause the price of the commodity to fluctuate around this baseline.