The diamond-water paradox is an example that shows that
A) necessities like water should have a higher price.
B) marginal utility rather than total utility determines what people are willing to pay for a good.
C) there are exceptions to the law of diminishing marginal utility.
D) marginal utility can initially increase and then decrease.
Correct Answer:
Verified
Q332: Why is water much cheaper than diamonds
Q333: The diamond-water paradox illustrates the idea that
Q334: Q335: To derive the law of demand, we Q336: Given the price of a good or Q338: Why are diamonds more expensive than water?
A)
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