Suppose that Irina is prepared to pay a maximum of $2.40 for her first glass of cranberry juice,but for each subsequent glass she is only prepared to pay 20 cents less than the previous one.
-In which book is the diamond-water paradox first mentioned?
A)Marx's Das Kapital.
B)Keynes's General Theory.
C)Ricardo's Principles of Political Economy and Taxation.
D)Adam Smith's Wealth of Nations.
E)Marshall's Principles of Economics.

Question

Quizplus · Accepted Answer

The diamond-water paradox is first mentioned in Adam Smith's "Wealth of Nations," where he questions why water, which is essential to life, is often far cheaper than diamonds, which are not necessary for survival. This paradox highlights the difference between intrinsic value and market value.

Suppose That Irina Is Prepared to Pay a Maximum of $2.40