We can explain the paradox of value as follows: The consumer surplus from water, which is cheap, is ________ than the consumer surplus from gold, which is expensive; the total utility from gold is ________ than the total utility from water; and the marginal utility per dollar spent on water ________ the marginal utility per dollar spent on gold.
A) greater; less; equals
B) smaller; less; equals
C) greater; greater; greater than
D) less; greater; greater than

Question

Quizplus · Accepted Answer

The consumer surplus from water is greater than from gold because water is essential and consumed in larger quantities. The total utility from gold is less than from water because water is more essential. The marginal utility per dollar spent on water equals that of gold due to consumer equilibrium.

We Can Explain the Paradox of Value as Follows: the Consumer