What is the most important reason why diamonds are expensive?
A)Very few diamonds are discovered each year.
B)The seller of most diamonds in the world restricts output.
C)They are a symbol of luxury.
D)They are a form of conspicuous consumption.

Question

Quizplus · Accepted Answer

The primary reason diamonds are expensive is because the companies that sell most of the diamonds in the world control the supply to keep prices high. This artificial scarcity is a significant factor in their high cost.

What Is the Most Important Reason Why Diamonds Are Expensive