4. Three gnomes, Pili, Eli, and Sleepy, found a diamond, a topaz, and a copper basin in a cave. Eli has a red hood and a longer beard than Pili. The one who found the basin has the longest beard and a blue hood. The gnome with the shortest beard found the diamond. Who found what? Explain your answer.
Answer: Spali found the copper basin, Pili found the diamond, and Eli found the topaz.

Solution: Since the gnome with the longest beard has a blue hood, Eli does not have the longest beard. Pili also does not have the longest beard (since it is shorter than Eli's). Therefore, the longest beard belongs to Spali, the medium beard to Eli, and the shortest beard to Pili. Thus, the basin was found by Spali, the diamond by Pili. And, therefore, Eli found the topaz.