Although water is useful yet it is cheap on the country demad is not much of use still it is very expensive. Give an economic reason for their paradox.
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This paradox can be explained through utility and value analysis.
Even though water is valuable and still very useful in day to day life, water is more abundant than diamonds.
Diamonds are not abundant in this country which makes is more valuable than water regarding cost.
Valuable quantity pulls the marginal usage down which reduces the prices of vital commodities.
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