Since there is a limited supply of diamonds in the world, the consumption of diamonds
A) takes place at relatively high marginal value.
B) takes place at relatively low marginal value.
C) takes priority over some other good.
D) is no less important than consumption of water.
E) should be regulated by the government.

Question

Quizplus · Accepted Answer

The limited supply of diamonds makes their marginal value high, meaning that people are willing to pay a higher price for them. This is evident in the pricing of diamonds, which is much higher than other goods with more abundant supply.

Since There Is a Limited Supply of Diamonds in the World