This is the solution to the diamond-water paradox: Those things that have high value in use sometimes have low prices because they are consumed at low __________ utility; those things that have low value in use sometimes have high prices because they are consumed at high __________utility.
A)marginal; total
B)total; total
C)total; marginal
D)marginal; marginal
E)none of the above

Question

Quizplus · Accepted Answer

The diamond-water paradox is explained by the concept of marginal utility. Diamonds have high prices because their marginal utility is high due to their rarity, while water has a low price because its marginal utility is low due to its abundance, despite its high total utility.

This Is the Solution to the Diamond-Water Paradox: Those Things