The paradox of value with respect to water and diamonds can be explained using consumer surplus because
◦ water is cheap but provides a large consumer surplus, while diamonds are expensive with a small consumer surplus.
◦ diamonds are in large supply relative to their demand, while water is scarce in supply relative to its demand.
◦ water is cheap but provides a small consumer surplus, while diamonds are expensive but provide a large consumer surplus.
◦ the total consumer surplus from diamonds is greater than the total consumer surplus from water.
◦ None of these answers is correct.