begin to fall, but the drop-off will be much less per unit than that of the water. The reason for this is scarcity. Scarcity as a whole makes an object much more desirable to society because of its relatively high demand and worth. Obviously diamonds are much more scarce in our world than water. As a result of this fact diamonds retain a high monetary value in society. Here, the diamond/water tradeoff is an obvious one. If we were to be given the choice between water and diamonds, assuming our everyday needs for survival are being met, we would surely select the diamonds because such a high monetary value would bring a much higher rate of exchange in the marketplace...
