The paradox in "the paradox of value" refers to the
A) confusion between supply curves and demand curves.
B) fact that goods with high total values command high prices.
C) fact that goods with low total values command low prices.
D) situation where a good with a low total value can command a high price, while a good with a high total value can command a low price.
E) situation where a good that is necessary to sustain life is "more valuable" than a decorative, luxury item.

Question

Quizplus · Accepted Answer

The paradox of value refers to the situation where a good with a low total value can command a high price, while a good with a high total value can command a low price. This is paradoxical because typically, goods with higher total values command higher prices, but in some cases, such as with diamonds or water, this is not the case.

The Paradox in "The Paradox of Value" Refers to the