Question
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
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.
Theideathathouseholdsandfirmsmustmakechoicesbecauseofscarcityisthefundamentalnotionofeconomicanalysis.Wenowwanttoexpandonthatanalysistoconsiderwhyconsumersbehavethewaytheydo.Whydoesapersondemandacertaingoodorservice?Anobviousansweristhatthegoodorserviceisexpectedtosatisfysomeneedordesireoftheconsumer.
Can marginal utility be negative?
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Microeconomics
Authors: Dean S. Karlan, Jonathan J. Morduch
2nd edition
1259813337, 1259813339, 978-1259813337
