Question

Are prices an accurate measure of a good's total value? Yes, prices are an accurate measure of a good's total value. No, prices depend on the elasticity of supply and demand. No, prices reflect marginal value, not total value. No, prices are the total benefit consumers derive from all units consumed. Which of the following accurately explains why professional wrestlers earn more than nurses? The supply of professional wrestlers is small relative to nurses, and price is determined by marginal value (not total value). The supply of professional wrestlers is small relative to nurses, and price is determined by total value (not marginal value)

Answer 1

a) Price is not an accurate measure of a good's total value because they reflect the marginal value of the goods and not the total value, example, water is more valuable than diamond but water is cheaper than diamond.

the answer is "price reflects the marginal value and not the total value"

b) "A"

Supply of the professional wrestler is much less than nurses and the price depends on the marginal value . otherwise nurse will be more valuable.