The diamond-water paradox arises because:

A) essential goods may be cheap while nonessential goods may be expensive.
B) the marginal utility of certain products increases,rather than diminishes.
C) essential goods are always higher priced than nonessential goods.
D) we sometimes fail to use money as a standard of value.

Diamond-Water Paradox

A question in economics that points out the contradiction between the high value of diamonds, which are non-essential, and the low value of water, which is essential for survival.

Marginal Utility

The extra pleasure or benefit derived from using one more unit of a product or service.

Essential Goods

Goods that are necessary for basic survival and well-being, such as food, water, and healthcare.