Economy, asked by bangtankings213, 6 hours ago

What is water diamond paradox?​

Answers

Answered by tanuaarav954
1

Answer:

"diamond-water paradox,” which economist Adam Smith pondered but was unable to solve. Smith noted that, even though life cannot exist without water and can easily exist without diamonds, diamonds are, pound for pound, vastly more valuable than water.

Answered by adreejaarmy
7

According to Adam Smith, even though life cannot exist without water and can exist without diamonds, diamonds are more valuable than water. The marginal-utility theory of value resolves the paradox. Water in total is much more valuable than diamonds in total because the first few units of water are necessary for life.

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