7/2018 10:00 PM A 10/100 Print Calculator n 6 of 50 Sapling Learning Which of th

Question

7/2018 10:00 PM A 10/100 Print Calculator n 6 of 50 Sapling Learning Which of the following most accurately summarizes "the paradox of value"? O Pices of goods rise and fall, but their values never change. The concept of valuecompletely subjective, so the assertion that something can be valuable is erroneous Goods that have a low value in use, thus higher total utility, are often Goods that have a high value in use, thus higher total utility, are often priced lower than those that have a low value Which of the following economic concepts is most instrumental in resolving "the paradox of value"? O Utility maximization O Budget line O Relative prices O Marginal utility Previous e, Check Answer 0 Next Hint

Explanation / Answer

Question 1

Fourth option.

The paradox of value states that water which has high value in use is priced lower. On the other hand, diamonds which have a low value in use have a higher price.

Question 2

Marginal utility.

The paradox of value states that marginal utility of water is low because it has abundant supply. Whereas, diamond is scarce and it’s marginal utility is higher.

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.