The diamond-water paradox arises because: the marginal utility of certain products increases, rather than diminishes. essential goods may be cheap while nonessential goods may be expensive. we sometimes fail to use money as a standard of value. essential goods are always higher priced than nonessential goods.
The diamond-water paradox arises because: the marginal utility of certain products increases, rather than diminishes. essential goods may be cheap while nonessential goods may be expensive. we sometimes fail to use money as a standard of value. essential goods are always higher priced than nonessential goods.
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 10QP
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Question 20
The diamond-water paradox arises because:
the
essential goods may be cheap while nonessential goods may be expensive.
we sometimes fail to use money as a standard of value.
essential goods are always higher priced than nonessential goods.
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