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.

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