The paradox of value refers to the
A) utility maximizing rule.
B) fact that water is vital but cheap while diamonds are relatively useless but expensive.
C) fact that consumers have different preferences and utility schedules.
D) law of demand.
E) issue of why the consumer surplus from water equals the consumer surplus from diamonds.

Question

Quizplus · Accepted Answer

The paradox of value refers to the fact that some necessities, such as water, have a low value or price despite being essential for life, while some luxury goods, such as diamonds, are highly valued and expensive despite being relatively useless.

The Paradox of Value Refers to the