The water and diamonds paradox of value results from
A) the concept of deadweight loss.
B) the "law of demand."
C) diminishing marginal utility.
D) the elasticity of demand.

Question

Quizplus · Accepted Answer

The water and diamonds paradox of value is explained by diminishing marginal utility, where water, though essential, has a lower marginal utility compared to diamonds, which are less essential but have a higher marginal utility.

The Water and Diamonds Paradox of Value Results from