Water has a ________ marginal utility and brings a ________ consumer surplus; diamonds have a ________ marginal utility and bring a ________ consumer surplus.
A) small; small; large; large
B) large; large; small; small
C) small; large; large; small
D) large; small; small; large

Question

Quizplus · Accepted Answer

Water has a small marginal utility because it is abundant and essential, leading to a large consumer surplus due to its low price. Diamonds have a large marginal utility because they are rare and luxurious, leading to a small consumer surplus due to their high price.

Water Has a ________ Marginal Utility and Brings a ________

Water Has a Marginal Utility and Brings a