If Water Is Essential for Life, While Diamonds Are Not

If water is essential for life, while diamonds are not, then why is water cheaper than diamonds?

A) Because most people would rather die with a big diamond ring than live without one.
B) Because the total utility generated by diamonds is larger than the total utility generated by water.
C) Because most people do not understand their total need for water.
D) Because water is abundant, the marginal utility of water is low, and price reflects marginal utility, not total utility.

Correct Answer:

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