The Diamond Water Paradox

An austrian economist would say that the value of something, it's based on supply and demand. But we have to consider the fact that there is a scarcity of bottles of water in los vegas. When you're stranded in the middle of the desert, severely dehydrated, which you'd pay more for, a diamond or a glass of water? The Austrians would say that you're making a subjective judgment about the value of a glass ofWater.