I’m working on a Management exercise and need support.
1- I need the answer within one day
2- I need the answer from two pages in a word file
3- Please write the references
Critical Thinking 1: The diamond-water 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 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.