Beutiful Diamonds
apart from being the hardest material known on earth, and aesthetically beutiful, why are diamonds so vauable?
I just fit the question on the issue of space indeed!
This is one of the classical economic issues that was discussed in Smith. The question is why water was cheaper than diamonds, but water is so useful and diamonds less (and certainly less in 1776, when Smith wrote). The solution is that the 'use' or what we call the application, is not the determinant of the total price. Maybe this is obvious, maybe not. Many people also use this example to say that the prices reflected in the margin, but Smith had nothing to do with marginal analysis.
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Beutiful 14k yellow gold diamond cocktail/ cluster ring $350.00 |
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Beutiful** Vintage genuine leather GADG- Diamond C814 Camera bag $48.00 |