Ben spends $20 a year on 2 bunches of flowers and $50 a year on 10,000 gallons of tap water. His marginal utility from flowers is 2 units and his marginal utility from water is 0.5 units per gallon.
Are flowers or water more valuable to Ben? Why? Explain Provide a detailed explanation how Ben's expenditure on flowers and water illustrates the diamond-water paradox