It is sometimes thought paradoxical that water, which is
essential to life, is of little value in the market whereas
diamonds, which are useless decorative baubles, are valued
very highly. The reason for this seeming paradox is that
1. price is equal to marginal value, not total
value.
2. price and value are two different things.
3. both of the above.
4. none of the above.
Choose the option that yields the correct answer.