Multiple Choice
The high price of diamonds relative to the price of water reflects the fact that, at typical levels of consumption,
A) the total utility of water is relatively low.
B) the total utility of diamonds is relatively high.
C) the marginal utility of water is high.
D) the marginal utility of diamonds is relatively low.
E) the marginal utility of diamonds is greater than the marginal utility of water.
Correct Answer:
Verified
Correct Answer:
Verified
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