Why Does the Paradox of Value Exist

The paradox of value (also known as the diamond–water paradox) is the contradiction that, although water is on the whole more useful, in terms of survival, than diamonds, diamonds command a higher price in the market.

What is and why does the paradox of value exist?

The paradox of value (also known as the diamond–water paradox) is the contradiction that, although water is on the whole more useful, in terms of survival, than diamonds, diamonds command a higher price in the market.

What does the paradox of value state?

An observation which states that goods that are crucial to the upkeep of a person and critical to their life, such as water, are usually much cheaper, while on the other hand, those goods which have no value to the human life, such as a diamond is tremendously expensive.