If the market for diamonds is at equilibrium and De Beers increased its prices, people would still demand the same quantity of diamonds.

Question

Quizplus · Accepted Answer

If De Beers increased its prices in the market for diamonds at equilibrium, then the demand for diamonds would decrease. This is because consumers would start looking for alternative goods that can substitute for diamonds at a lower cost. Therefore, the quantity demanded for diamonds would decrease, and the market for diamonds would no longer be at equilibrium.

If the Market for Diamonds Is at Equilibrium and De