The diamond-water paradox is illustrated by which of the following statements?
A) Water, a necessity, has a relatively low price whereas diamonds, usually a luxury, have a relatively high price.
B) Although water appears to have a relatively low price when compared to diamonds, in reality, it has a relatively higher price.
C) Although water appears to have a relatively low price when compared to diamonds, in reality, the prices are equal.
D) Although water appears to have a relatively low price when compared to diamonds, at the margin, water has the relatively higher price.
E) Although water appears to have a relatively low price when compared to diamonds, at the margin, the prices are equal.
Correct Answer:
Verified
Q86: Marginal utility is
A)the extra satisfaction derived from
Q87: Assuming only two goods X and Y,
Q88: Exhibit 20-2 Q89: Exhibit 20-2 Q90: Exhibit 20-1 Q92: Total utility Q93: Exhibit 20-2 Q94: Exhibit 20-3 Q95: To economists, utility means Q96: Exhibit 20-2 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
![]()
![]()
![]()
A)is the total amount of satisfaction
![]()
![]()
A)marginal value.
B)relative value.
C)satisfaction.
D)usefulness.
E)a, c,
![]()