The Diamond-Water Paradox

Multiple Choice

The diamond-water paradox

A) is the fact that people get more utility from water than diamonds, but the price of diamonds is much higher than that of water.
B) occurs whenever someone is willing to pay more for something that is a necessity compared to what he or she is willing to pay for a luxury.
C) illustrates the ability economists have to measure utility.
D) occurs when an individual prefers water to diamonds.
E) occurs when an individual prefers diamonds to water.