Write short notes on:
2. Paradox of value
ANSWER:
2) Paradox of value refers to the difference between the value in use of a commodity and the value in exchange. This paradox states that a commodity that has a high use value may have a low exchange value (in terms of price). For instance, water, which has a high use value commands a low price in the market, i.e. it has a low exchange value. On the other hand, diamonds that have a low use value have high very high exchange value. Thus, there is a disparity between the use value and exchange value.
