If Water Is Essential for Life, While Diamonds Are Not

Multiple Choice

If water is essential for life, while diamonds are not, then why is water cheaper than diamonds?

A) Because the marginal utility of water is high but the total utility is low.
B) Because the total utility generated by diamonds is larger than the total utility generated by water.
C) Because most people do not understand their total need for water.
D) Because water is abundant, the marginal utility of water is low, and price reflects marginal utility, not total utility.