Which of the following is the best statement of the paradox of value?
A) Why does the amount people are willing to pay for a good vary with the amount consumed?
B) Why do some goods like water, which is necessary for life, have a low price while other goods like diamonds have a high price?
C) What is the logical relationship between value and price?
D) Why is efficiency so valuable for a society?
E) None of the above states the paradox of value.

Question

Quizplus · Accepted Answer

The paradox of value refers to the fact that some goods, such as water, which are essential for survival, have a low price while some non-essential goods, such as diamonds, have a high price. This paradox highlights the distinction between value, which is subjective and based on individual preferences, and price, which is determined by supply and demand in the market. Choice B captures this paradox most accurately.

Which of the Following Is the Best Statement of the Paradox