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 harmless economists for a very long time . It states that water is to a greater extent(prenominal) benefits to wad than diamonds but it is valued at a level think of . This open fire be answered by understanding what affects the determine of a commodity The price of a commodity does non attend on the benefits that it can provide , or the hail profit broadcast . 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 standard of the commodity is purchased . Since water is abundant , it can be purchase d more often hence , its peripheral utility decreases . infield , on the other hand is r ar and so its borderline utility is large .

Hence , the price of water get out 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 race for aim pay higher for giving their children better knowledge , it willing not be as big as what they are willing to pay just to see their favourite athlete . It is also a given fact that the depend of teachers exceeds the number of athletes especially the superstars . As stated earlier , the marginal utility will d! ecrease as more is purchased . Because of this...If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

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