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

Question

Quizplus · Accepted Answer

Since diamonds are a rare and limited resource, their marginal value is generally high as people are willing to pay a premium for them. Therefore, the consumption of diamonds takes place at a relatively high marginal value.

Since There Is a Limited Supply of Diamonds in the World,the