" The things which have the greatest value in use have frequently little
or no value in exchange; and on the contrary, those which have the
greatest value in exchange have frequently little or no value in use.
Nothing is more useful than water: but it will purchase scarce any
thing; scarce any thing can be had in exchange for it. A diamond, on the
contrary, has scarce any value in use; but a very great quantity of
other goods may frequently be had in exchange for it. (Wealth of Nations Book 1, chapter IV) " - wikiWhy ?
- Marginal utility theory:
Diamonds are scarcer , while Water is available in plenty
Though there are many other reasons (like value depends on price paid for it-monetary/non monetary terms etc);i chose this to share for the sake of those a very FEW people who do not go with the flow...
and ye...Demand theory - Things that are of highest value/Dearest like diamonds always have less demand
and cheapest things have Highest demand
eg : unacademy / khan academy videos [vs] tumhari ma mere dash### videos
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