expain value is use and value in exchange with eg of water diamond paradox
Answers
Answer:
The paradox of value (also known as the diamond–water paradox) is the contradiction that, although water is on the whole more useful, in terms of survival, than diamonds, diamonds command a higher price in the market. The philosopher Adam Smith is often considered to be the classic presenter of this paradox, although it had already appeared as early as Plato's Euthydemus. Nicolaus Copernicus,John Locke, John Lawand others had previously tried to explain the disparity.
Answer:
This difference was illustrated by the famous theory of “Paradox of Value” also called “water-Diamond Paradox”. ... Water which obviously has great value in use, has little value in exchange(i.e a lower price) and diamonds which are of little practical use but have a great value in exchange.