What best describes value in use as opposed to value in exchange?

Value in use refers to the worth of an asset based on its specific utility or functionality to an individual or entity, taking into account how it serves that particular user's needs. This concept emphasizes the personal benefits derived from owning or using the asset, which can vary significantly from one user to another. For instance, a property might be particularly valuable to an owner because it suits their specific needs, such as being located near their workplace or accommodating a unique business operation.

In contrast, value in exchange pertains to the price an asset can command in the market, which is influenced by broader market conditions, trends, and the willingness of buyers to pay. This value reflects what someone else is willing to pay for it, regardless of its utility to a specific individual or business.

Thus, the definition of value in use as it relates to specific uses of a property captures the essence of how that value is determined on a personal level, as opposed to being driven purely by external market conditions.