The diamond-water paradox of value can be explained by
A) distinguishing between total utility and marginal utility.
B) water's high level of utility relative to diamonds.
C) water's low price relative to diamonds.
D) the fact that utility cannot be measured.
A
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Part of the reason why barely used cars sell for much less than new cars is that
A. buyers and sellers have symmetric information about cars and both have less information about used cars than about new cars. B. buyers and sellers have symmetric information about cars and both have more information about used cars than about new cars. C. buyers have more information about used cars than sellers do. D. sellers have more information about used cars than buyers do.
Price elasticity of demand shows how
A. Responsive the quantity demanded is to a change in price. B. To compute the slope of the demand curve. C. Responsive the price is to a change in demand. D. Responsive the quantity demanded is to a change in the price of related goods.