Eco 201 Module 3 Case

Running head : MODULE 3 CASEEco 201 Module 3 Case[Name][Course][Professor][University]Eco 201 Module 3 CaseThe diamond-water paradox is one of the questions that puzzled vestal economists for a very long time . It states that water is more(prenominal)(prenominal) benefits to muckle than diamonds but it is valued at a level nose . This do-nothing be answered by understanding what affects the determine of a commodity The price of a commodity does non view on the benefits that it can provide , or the hail public-service corporation syllabus . The factor that dictates the price of a commodity is the merriment that it can give when extra unit is consumed or purchased , called the peripheral utility . The fringy utility , however , decreases as bigger measurement of the commodity is purchased . Since water is abundant , i t can be purchased more often hence , its peripheral utility decreases . infield , on the other hand is r ar and so its fringy utility is large .

Hence , the price of water conduct behind be less than the price of diamondThe case of suspensors having higher(prenominal) hire than teachers is very similar to the diamond- water paradox . Although wad for aim pay higher for giving their children better precept , it willing not be as big as what they are willing to pay just to see their best-loved athlete . It is also a given fact that the depend of teachers exceeds the number of athletes especially the supers tars . As stated earlier , the marginal util! ity will decrease as more is purchased . Because of this...If you unavoidableness to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper