Prior to beginning work on this discussion, read Farah Mohammed’s article, Why Are Diamonds More Expensive Than Water?, as well as Chapter 5 in your textbook, especially Sections 5.1 and 5.3, and respond to the following:
Describe the relationship between total utility and marginal utility.
Explain if marginal utility can be negative.
Examine the diamond-water paradox. Why are diamonds more expensive than water?
Evaluate the law of diminishing marginal utility.
Identify some items, explaining your reasoning, that do not follow the law of diminishing marginal utility.
Evaluate how the law of diminishing marginal utility can explain the diamond-water paradox.
I require that you include the section number where you found your answers. For example: (Amacher & Pate, 2019, section 2.3).
Text Book Reference:
Amacher, R. and Pate, J. (2019). Principles of microeconomics (2nd ed.).
Article Reference:
Mohammed, F. (2018, February 12). Why are diamonds more expensive than water?
(Links to an external site.)
JSTOR Daily. Retrieved from https://daily.jstor.org/diamonds-expensive-water/