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-BARSIC- [3]
3 years ago
13

This is the solution to the diamond-water paradox: Those things that have high value in use sometimes have low prices because th

ey are consumed at low __________ utility; those things that have low value in use sometimes have high prices because they are consumed at high __________utility.
A) total; total
B) total; marginal
C) none of the other choices
D) marginal; total
E) marginal; marginal
Social Studies
1 answer:
Sergeeva-Olga [200]3 years ago
5 0

Answer:

E) marginal; marginal

Explanation:

The diamond-water paradox is also known as the "paradox of value".

                 In this paradox it is argued that water which is an essential thing for human survival and is so important to human, is offered no value in the market. Whereas diamond which is just a precious stone and is not an essential thing in human's life is valued so much and has great value in the market than water.

                 So the diamond-water paradox provides the solution that those things having high values in usage have low prices in the market because they are consumed at low marginal utility. And those things which have low value in usage sometimes have high prices in the market because they are consumed at high marginal utility.

Hence he answer is

E) marginal; marginal

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