A large, new diamond mine has just opened, and the price of diamonds has gone down. Since she has studied economics, Cecilia decides to buy a diamond necklace since she knows that

A. diamonds are in great demand.

B. diamonds are a nonrenewable resource, making them scarce.

C. the cost of diamonds depends only on the demand.

D. the purchase of diamonds will satisfy wants and needs.

Question

Business

Beau Faulkner

3 April, 22:10

A large, new diamond mine has just opened, and the price of diamonds has gone down. Since she has studied economics, Cecilia decides to buy a diamond necklace since she knows that

A. diamonds are in great demand.

B. diamonds are a nonrenewable resource, making them scarce.

C. the cost of diamonds depends only on the demand.

D. the purchase of diamonds will satisfy wants and needs.

+4

Answers (1)

Know the Answer?

Adrian Chung · Answer 1

D. The purchase of diamonds will satisfy wants and needs.

Explanation:

Cecilia has a need for diamonds, they satisfy her need for prestige, or self-esteem, or both. Now that the price of diamonds has gone down, she sees the opportunity to purchase an expensive product like a diamond necklace.

She knows as well that if economic hardship comes, or if the price fo diamonds goes up, she can sell her necklace for a higher or similar price.