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I am Lyosha [343]
3 years ago
6

a large new diamond mine has just opened and the price of diamonds has gone down. since she has studied economics, cecilia decid

es to buy a diamond necklace since she knows that
Social Studies
2 answers:
Butoxors [25]3 years ago
8 0
The cost of diamonds depends only on the demand. :)
Vinvika [58]3 years ago
7 0

Answer:

If the supply increases the price decreases.

Explanation:

<u>If the supply of diamonds increases the price decreases. </u>In fact, one of the reasons why diamonds are very expensive is because it is a scarce commodity in the world and also its extraction and production process has a high cost.

Cecilia can afford to acquire the diamond necklace by the opening of the new mine since the price has decreased and she knows that being a non-renewable resource, when the mine runs out the price of diamonds will rise again and she could sell her necklace and get a profit.

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