If the world supply of diamonds increases, the market price of diamonds decreases, and the consumer surplus derived by diamond consumers increases.

Question

Quizplus · Accepted Answer

When the world supply of diamonds increases, the supply curve shifts to the right, resulting in a lower equilibrium price. As a result, the consumer surplus derived by diamond consumers increases because they can buy diamonds at a lower price than before.

If the World Supply of Diamonds Increases, the Market Price