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