In his book The Wealth of Nations, Adam Smith noted the contradiction that, Nothing is more useful
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In his book The Wealth of Nations, Adam Smith noted the contradiction that, "Nothing is more useful than water: but it will purchase scarce anything; scarce anything can be had in exchange for it. A diamond, on the contrary, has scarce any value in use; but a very great quantity of other goods may frequently be had in exchange for it." This is situation is known as the diamond-water paradox. How does thinking at the margin help to explain the paradox?
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Related Book For
Introduction To Economics Social Issues And Economic Thinking
ISBN: 9780470574782
1st Edition
Authors: Wendy A. Stock
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