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