Eco 201 Module 3 Case

Running head : MODULE 3 CASEEco 201 Module 3 Case[Name][Course][Professor][University]Eco 201 Module 3 CaseThe diamond-water paradox is one of the questions that puzzled guiltless economists for a very long time . It states that water is much(prenominal) benefits to mint than diamonds but it is valued at a level think . This rotter be answered by understanding what affects the determine of a commodity The price of a commodity does non estimate on the benefits that it can provide , or the hail good curriculum . The factor that dictates the price of a commodity is the merriment that it can give when extra unit is consumed or purchased , called the peripheral utility . The fringy utility , however , decreases as bigger mensuration of the commodity is purchased . Since water is abundant , it can be purchased more often hence , its peripheral utility decreases . infield , on the other hand is r ar and so its marginal utility is large .

Hence , the price of water sacrifice behind be less than the price of diamondThe case of suspensors having higher(prenominal) hire than teachers is very similar to the diamond- water paradox . Although muckle for aim pay higher for giving their children better discipline , it willing not be as big as what they are willing to pay just to see their best-loved athlete . It is also a given fact that the depend of teachers exceeds the number of athletes especially the superstars . As stated ear lier , the marginal utility will decrease as! more is purchased . Because of this...If you lack to get a full essay, order it on our website: OrderCustomPaper.com

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