The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very ____ and the marginal utility of the last diamond carat purchased is very ___.
A)low;low
B)high;high
C)high;low
D)low;high

Question

Quizplus · Accepted Answer

The water-diamond paradox is resolved by understanding that water, although essential, is abundant, leading to a low marginal utility for the last gallon consumed. Diamonds, being rare, have a high marginal utility for the last carat purchased.

The Water-Diamond Paradox Is Resolved Once We Realize That the Marginal