The market for diamond rings is closely linked to the market for high-quality diamonds. If a large quantity of high-quality diamonds enters the market, then the
a. supply curve for diamond rings will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity.
b. supply curve for diamond rings will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity.
c. demand curve for diamond rings will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity.
d. demand curve for diamond rings will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity.
b
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Explain how an increase in the price of leather brought about by shift in tastes may lead to an increase in the supply of beef
What will be an ideal response?
One reason why we might want to impose restrictions on free trade is to protect infant domestic industry in the formative stages of development and thus unable to compete yet on world markets
a. True b. False Indicate whether the statement is true or false
In the market for loanable funds, the law of supply:
A. reflects that more people will choose to borrow the lower is the interest rate. B. reflects that more people will choose to save the lower is the interest rate. C. reflects that more people will choose to save the higher is the interest rate. D. reflects that more people will choose to borrow the higher is the interest rate.
Average fixed cost can be calculated using any of the formulas below except
A) TFC/Q. B) (TC/Q) - AVC. C) ?(TC - VC)/?Q. D) (TC - VC)/Q.