The diamond-water paradox arises because

A) essential goods may be cheap, while nonessential goods may be expensive.
B) the marginal utility of certain products increases, rather than diminishes.
C) essential goods are always higher priced than nonessential goods.
D) we sometimes fail to use money as a standard of value.

Diamond-water Paradox

The contradiction observed in value theory where essential goods like water have low prices, while non-essential goods like diamonds have high prices.

Essential Goods

Products that are necessary for basic living and well-being, often unchanged by changes in income.

Nonessential Goods

Products and services considered as non-critical for survival or basic living standards.