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 everlasting(a) economists for a very long time . It states that water is to a greater extent(prenominal) benefits to commonwealth than diamonds but it is valued at a level assess . This bunghole be answered by understanding what affects the determine of a commodity The price of a commodity does non wager on the benefits that it can provide , or the hail return course . 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 measurement 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 borderline utility is large .

Hence , the price of water transmit 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 masses for aim pay higher for giving their children better tuition , 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 su perstars . As stated earlier , the marginal ! utility will decrease as more is purchased . Because of this...If you compliments to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper