Anne Robert Jasques Turgot,in 1769,he cautioned that in despite of being something that is highly needed water is not considered a valuable thing in wetlands.Seven years later,Adam Smith,carried that one step further:According to him,high amounts do not paid for water in despite of there is nothing valuable more than water.Even though there is a few value in terms of usage "generally for against diamond are paid very high amounts." he said.So there is a clear dilemma about the value of certain goods and the importance for people.
Marginal Utility
This paradox can be explained with the help of a concept known as marginal utility.Marginal benefit is the amount of pleasure received from the last unit of the consumed goods.In 1889 Austrian economist Eugen Böhm Von Bawerk,explained with the example of a farmer with five sacks of wheat.Farmer puts in order the sacks from more important(own food) to insignificant(for feed the birds).If he lose one of them sacks he will be give up to feed birds.The farmer needs wheat to feed his stomach, but the price he will pay to replace it in the fifth sack is small,because the fifth sack corresponds to a small pleasure( to feed birds). The water is the something exist abundant;but the diamond is exist rarity.There is a high marginal utility of an extra diamond; so it has much higher value more than an extra jug water.
