Air is essential to life but commands no price!Diamond is not essential to life ...

This Economics question is asking about the value of air and diamonds. The question states that air is essential to life, but it doesn't have a price. On the other hand, diamonds are not essential to life, but they have a high price. The question is asking which of the options best explains why this is the case.

The correct answer to this question is Option B: value. The reason why air does not have a price even though it is essential to life is that it is abundant. There is plenty of air available, and everyone needs it to survive, so there is no need to pay for it. However, diamonds are rare and difficult to find, which makes them valuable. People are willing to pay a high price for diamonds because they are scarce and highly valued.

This question relates to the concept of supply and demand in economics. When something is in high demand but limited in supply, it becomes more valuable and commands a higher price. On the other hand, when something is abundant and easily accessible, it becomes less valuable and commands a lower price.

In summary, the correct answer to this Economics question is Option B: value. Air does not have a price because it is abundant, while diamonds command a high price because they are scarce and highly valued. This question highlights the importance of supply and demand in determining the value of goods and services.