=+ This became known as the diamond-water paradox. Can you explain the paradox to Smith? B. Suppose

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=+ This became known as the diamond-water paradox. Can you explain the paradox to Smith?

B. Suppose our marginal willingness to pay for teachers (x1

) is given by MWTP 5 A 2 ax1 and our marginal willingness to pay for star basketball players (x2

) is given by MWTP 5 B 2 bx2

.

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