Explain the diamond-water paradox and find out in the literature how economists

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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.

I don’t want percentage similarity

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