The paradox of value | Akshita Agarwal | TED-Ed Animation

Develop your mental agility and problem solving skills with “The paradox of value.” This TED Talk begins with a hypothetical scenario of being asked to choose between a diamond and a bottle of water as a prize on a game show. Obviously, one would pick the diamond because diamonds are more valuable. But, if given the same choice when dehydrated in the desert, would you choose differently? Lesson creator Akshita Agarwal uses this fun thought experience to explain the paradox of value and why defining value is not as simple as it seems. From there, Agarwal discusses how value is determined in economics and explains the concepts of utility and marginal utility, and how this impacts all of our decisions.