Why is water cheaper than diamonds ?

World & Nature

The paradox of value also known as the diamond–water paradox is the apparent contradiction that, although water is on the whole more useful in terms of survival, diamonds command a higher price on the market. At low levels of consumption, water has a much higher marginal utility than diamonds and thus is more valuable.

People usually consume water at much higher levels than they do diamonds, and thus the marginal utility and price of water are lower than that of diamonds. In explaining the diamond-water paradox, marginalists explain that it is not the total usefulness of diamonds or water that matters.