Question

Identify and explain the concept from the given illustration:

Although gold is not necessary for survival, the price of gold is high.

Answer 1

• Identified concept: Paradox of value.
• Explanation of concept: A rare good has a high value in exchange (price) but a low value in use (necessity for survival). A paradox of value is the discrepancy between the value of a commodity as used and its worth in exchange.