Why Are Diamonds More Expensive Than Water?

Water is simultaneously one of the few things we absolutely cannot live without and one of the things we value least. There's an economic rationale behind that.

The idea that households and firms must make choices because of scarcity is the fundamental economic analysis notion. We now want to expand on that analysis to consider why consumers behave the way they do. Why does a person demand a certain good or service? An obvious answer is that the good or service is expected to satisfy the consumer's need or desire.

What is the relationship between total utility and marginal utility? Can you share some examples?