All else constant,an increase in the incomes of consumers in the market for diamonds would cause the supply of diamonds to increase.

Question

Quizplus · Accepted Answer

An increase in the incomes of consumers in the market for diamonds would generally cause an increase in demand for diamonds as consumers would have more disposable income to spend on luxury goods like diamonds. This would not necessarily lead to an increase in supply of diamonds, as the supply of diamonds is determined by factors such as mining output and the availability of diamond reserves. If the supply of diamonds did not increase in response to higher demand, then the result would likely be an increase in diamond prices rather than an increase in the quantity of diamonds supplied.

All Else Constant,an Increase in the Incomes of Consumers in the Market