ECON 101 Saudi Electronic University The Diamond Water Paradox Paper

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ECON 101 Saudi Electronic University The Diamond Water Paradox Paper

Business Finance, econ 101

ECON 101 Saudi Electronic University The Diamond Water Paradox Paper

I need an explanation for this Economics question to help me study.

In An Inquiry into the Nature and Causes of the Wealth of Nations published in 1776, Adam Smith wrote:

Nothing is more useful than water: but it will purchase scarcely anything A diamond, on the contrary, has scarcely any use-value; but a very great quantity of other goods may frequently be had in exchange for it

Explain the diamond-water paradox and find out in the literature how economists have later solved this paradox.

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