Suppose that the market for engagement rings is in equilibrium.Then political unrest in South Africa shuts down the diamond mines there.South Africa is the world's primary supplier of diamonds.What will happen?

Question

Quizplus · Accepted Answer

The shutdown of diamond mines in South Africa, a primary supplier, would reduce the supply of diamonds, leading to a decrease in the equilibrium quantity of engagement rings since diamonds are a key component. This does not directly affect the demand for engagement rings but impacts the supply side, leading to potential changes in price and quantity available in the market.

Suppose That the Market for Engagement Rings Is in Equilibrium