Although water is useful, yet it is cheap. On the contrary, diamond is not much of use, still it is very expensive. Give an economic reason for this paradox.

Although water is useful, yet it is cheap. On the contrary, diamond is

1.	Although water is useful, yet it is cheap. On the contrary, diamond is not much of use, still it is very expensive. Give an economic reason for this paradox.
Answer» Solution :The economic reason for thhis paradox is scarcity. Although WATER is useful, yet it is cheap due to its abundance in the economy. Diamonds are very EXPENSIVE because they are scarce and people are ready to pay ahigh PRICE. Value: Analytic

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Although water is useful, yet it is cheap. On the contrary, diamond is not much of use, still it is very expensive. Give an economic reason for this paradox.

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