Why Do Diamonds Cost More Then Water?
Besides enhancing your girls happiness, your sexual activity, and chances for reproduction what value do diamonds have on our survival? Nothing is more useful then water, yet it is monetarily so little in value compared to a diamond. We need diamonds to survive but we use diamonds to please.
Not to get all economic-y on you but there is a concept called marginal utility that explains this. Marginal utility is the amount of pleasure gained from the last unit of the commodity consumed. Drinkable water is everywhere, so therefore its abundant and we take it for granted because there are so many units of it. Diamonds though, are scarce. One extra diamond has a high marginal utility and so commands a much higher price than an extra cup of water. Diamonds are worth more than water because each one is extremely valuable no matter how many you have, while water becomes less valuable, per unit, as quantities increase. Also keep in mind that all diamonds are not pretty. Almost more then 95% of the diamonds that are mined don’t even make it to the market because their color and clarity are not up to par. NOW THATS SCARCE.