According to the diamond water paradox, why is the marginal benefit of water considered low?

The marginal benefit of water is considered low primarily because it is plentiful. In economics, the concept of marginal benefit refers to the additional satisfaction or value gained from consuming one more unit of a good or service. Water is often abundant and readily available in many parts of the world, which leads consumers to perceive its value as low relative to other goods, such as diamonds, which are scarce and therefore have a high marginal benefit.

In the context of the diamond-water paradox, while water is essential for life, its abundance means that individuals typically do not place a high value on the additional units of water they could consume. This is contrasted with diamonds, which are limited in supply and thus have a much higher perceived value per unit. Scarcity, not necessity, is a driving factor in determining marginal benefits. Other options do not capture this critical relationship between scarcity and value as effectively.