The diamond-water paradox unfairly compares the
A) amount of marginal utility a person receives from a small quantity of something rare with the total utility from a small quantity of something after already consuming a large amount.
B) amount of total utility a person receives from a small quantity of something rare with the marginal utility from a small quantity of something after already consuming a large amount.
C) amount of marginal utility a person receives from a small quantity of something rare with the marginal utility from a small quantity of something after already consuming a large amount.
D) price of water with the price of diamonds.
E) law of demand with the prices of water and diamonds.

Question

Quizplus · Accepted Answer

The diamond-water paradox compares the marginal utility of a rare item like diamonds with the marginal utility of a common item like water after consuming a large amount, highlighting the difference in perceived value.

The Diamond-Water Paradox Unfairly Compares the