Problem
Ben spends $50 a year on 2 bunches of flowers and $50 a year on 10,000 litres of tap water. Ben is maximizing utility and his marginal utility from water is 0.5 unit per litre.
a. Are flowers or water more valuable to Ben?
b. Explain how Ben's expenditure on flowers and water illustrates the paradox of value.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.