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Showing posts from June, 2019

Why are diamonds more expensive than water?

You are wondering why Argyle Diamond Investments ask such an absurd question, since nobody would want to pay more for a glass of water than for a ring that had a piece of field; In fact, Argyle Diamond Investments speak of goods that are very distant from each other in terms of price. However, in economics this is not so simple; The paradox of value, or paradox of water and pink diamonds , has been the object of study by economists of different ideologies for more than three centuries, and it remains so to this day. Imagine a fictitious situation. You've been wandering the desert for three hours in suffocating heat, and you're thirsty. Suddenly, you find a store that sells diamonds for one $ and bottles of water. What would you buy in that store? Possibly, even thinking that the price of diamonds is a bargain, you would buy the water bottle. At that time the bottle of water has reported the utility of covering a basic need, thirst, that would not satisfy you a...