Why Are Diamonds More Expensive Than Water

question 411

Multiple Choice

Why are diamonds more expensive than water?

• A) because the last glass of water has higher marginal utility than the last diamond
• B) because the last diamond has higher marginal utility than the last glass of water
• C) because you get more total utility from diamonds
• D) because water is a necessity

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Definitions:

Practical Solution

A viable and straightforward answer or method to resolve a problem or address a situation, often emphasizing effectiveness and simplicity.

Ridiculous Alternatives

A technique used in problem-solving or therapeutic contexts to spur creativity by considering seemingly absurd or impractical options.

Allostasis

The process by which the body responds to stressors by changing its physiological parameters to maintain homeostasis.

Homeostasis

The ability of a system, especially the body, to maintain internal stability, compensating for environmental changes.