3 The graph illustrates the diamondwater paradox. This paradox illustrates the apparent contradiction that although water is critical to survival and diamonds are not, diamonds command a much higher price in the market. LE: Macmillan Learning Which of the statements is true about the market for diamonds and water? 0 The equilibrium price of water is higher than the equilibrium price of diamonds. 0 Consumer surplus in the diamond market far exceeds consumer surplus in the water market. 0 The equilibrium quantity of diamonds is higher than the equilibrium quantity of water. 0 Consumer surplus in the water market far exceeds consumer surplus in the diamond market. Which of the statements is nor explained by the diamondwater paradox? 0 how supply inuences price 0 why diamonds are expensive O why water is in such high demand Q Why water is inexpensive Price diamonds diamonds water Quantity