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

Stephanie Stone

Business

15 July, 09:47

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.

+5

Answers (1)

Know the Answer?

Cloe Parker · 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.