According to the paradox of value, expensive goods, such as gemstones, provide consumers with
A) high total utility and low marginal utility.
B) low total utility and low marginal utility.
C) low total utility and high marginal utility.
D) high marginal utility and high total utility.

Question

Quizplus · Accepted Answer

The paradox of value suggests that expensive goods like gemstones have low total utility because they are not essential, but they have high marginal utility due to their rarity and desirability.

According to the Paradox of Value, Expensive Goods, Such as Gemstones