Imagine your on a game show, you can choose between the two prizes a diamond or a bottle of water. This is an easy choice, of course you would pick the diamond since it has a higher value. Now imagine getting the same choice again, but only this time you are not on a game show, but your on a desert lost after wondering for days, do you choose differently why, aren't diamonds still more valuable. This is the (Paradox of value). What this tells us defining value is not as simple as it seams. On the game show you where thinking about each items exchange value, what you could obtain from them from a later time like (Money), but in a emergency like the desert scenario what matters far more is there "use value" how help full they are in your current situation. We only get to choose one of the options we also must consider there opportunity cost, or what we lose by giving up the other choice, after all it doesn't matter how much you can get after selling the diamond if you make it out the desert alive. Most modern economist deal with the paradox of value by attempting to unify this consideration under the concept of (Utility)How well something satisfies a person wants or needs. utility can apply to anything, for the basic need food, to the pleasure of what you love doing and it will naturally vary for different people and different circumstances . The utility something has to you is how much your willing to pay for it . Now imagine yourself back in the desert only this time you get a new diamond or a fresh cold bottle of water every 5 minutes. If your like most people your first choose enough water to last the trip and then as many diamonds as you can cary, this is because something called (margin utility) and it means the more water you have the more the of its value decreases and the value of the diamond starts to increase as time goes on. It's is not just water or diamond its everything, when it comes to most things the more of it you require the less useful or less enjoyable every bit of it becomes. Utility applies not to just buying things but to all our decisions.
This means everything you have has a greater value but in a different picture
