The paradox of value can be resolved by distinguishing between
A) quantity demanded and quantity supplied.
B) supply and quantity supplied.
C) normative and positive statements.
D) total utility and marginal utility.

Question

Quizplus · Accepted Answer

The paradox of value, also known as the diamond-water paradox, is resolved by distinguishing between total utility and marginal utility. While water has a high total utility, its marginal utility is low due to its abundance, whereas diamonds have a high marginal utility due to their scarcity, despite having lower total utility.

The Paradox of Value Can Be Resolved by Distinguishing Between