"Essential" water is cheaper than "nonessential" diamonds because: new industrial uses for diamonds have been discovered. the supply of water is great relative to demand and the supply of diamonds is small relative to demand. although the total utility of diamonds is greater, their marginal utility is small. the supply of diamonds is great relative to demand and the supply of water is small relative to demand.
"Essential" water is cheaper than "nonessential" diamonds because: new industrial uses for diamonds have been discovered. the supply of water is great relative to demand and the supply of diamonds is small relative to demand. although the total utility of diamonds is greater, their marginal utility is small. the supply of diamonds is great relative to demand and the supply of water is small relative to demand.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter2: Fundamental Economic Concepts
Section: Chapter Questions
Problem 1E: For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect...
Related questions
Question
"Essential" water is cheaper than "nonessential" diamonds because:
new industrial uses for diamonds have been discovered.
the supply of water is great relative to
although the total utility of diamonds is greater, their
the supply of diamonds is great relative to demand and the supply of water is small relative to demand.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning