Economics

Paradox of Value

Paradox of Value

Paradox of Value is an observation that goods critical alive are very cheap, whereas others without any bearing on human existence are expensive. This paradox is explained through the law of present and demand. The paradox of value generally known as diamond–water paradox could be the apparent contradiction that will, although water is overall more useful, with regards to survival, than gemstones, diamonds command a higher price in the market.