# Diamond-Water Paradox ![[Paradox of Value - Wikipedia#^8go9lb]] **Classical economists refused to even address the problem, ascribing the price difference to scarcity.** It was the [[Austrian School of Economics]] that pointed out that **when trading water or diamonds one is never trading all of the world's water, or all of the world's diamonds. If that were the case, water would indeed be more valuable.** ![[Paradox of Value - Wikipedia#^5j8x1h]] ![[Paradox of Value - Wikipedia#^moxhl0]]