The paradox of value refers to the fact that
A) different consumers value the same items differently.
B) the value of a good depends on its total utility.
C) water costs little, while diamonds cost a lot.
D) water brings little consumer surplus.

Question

Quizplus · Accepted Answer

The paradox of value, also known as the diamond-water paradox, highlights the discrepancy between the high value of non-essential items like diamonds and the low cost of essential items like water.

The Paradox of Value Refers to the Fact That