Multiple Choice
People pay more for diamonds than for water because
A) total benefits from diamonds are high and total benefits from water are low.
B) there are no substitutes for water.
C) people don't make smart choices.
D) water is scarce.
E) marginal benefits from water are low and marginal benefits from diamonds are high.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: Market demand is the<br>A) sum of the
Q7: The economist's distinction between quantity demanded and
Q8: The law of demand works as long
Q9: When income increases, the quantity demanded of
Q10: Which will cause a decrease in quantity
Q12: Because drivers expect the price on Saturdays
Q13: The high price of diamonds relative to
Q14: If you feel strongly about protecting the
Q15: Products or services that are essential to
Q16: Willingness to pay depends on total benefit,