Explain the Diamond Water Paradox Microeconomics Paper

Explain the Diamond Water Paradox Microeconomics Paper

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.

***Need help writing the above essay for my Microeconomics class, around 2 and half to 3 pages max. The university uses BB Safe Assign tool, therefore, the essay must be unique