Multiple Choice
One explanation for the existence of the diamond-water paradox is that
A) the demand for diamonds is greater than the demand for water.
B) people fail to recognize that demand and supply are both equally important in determining the value of a product.
C) the supply of diamonds is greater than the supply of water.
D) people fail to recognize that demand and supply do not matter in determining the value of a product.
E) people fail to recognize that the marginal utility of diamonds is less than the marginal utility of water.
Correct Answer:
Verified
Correct Answer:
Verified
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