If the Price of Diamonds Is Expected to Decrease,all Else

question 158

Multiple Choice

If the price of diamonds is expected to decrease,all else equal,then the demand for diamonds ________ and the demand for platinum ________.

• A)decreases;increases
• B)decreases;decreases
• C)increases;increases
• D)increases;decreases

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Definitions:

Fixed Asset Turnover

A financial efficiency ratio that measures how well a company utilizes its fixed assets to generate sales.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Stock Market

A public market for buying, selling, and issuing shares of publicly held companies, serving as a critical mechanism for price discovery and capital allocation.

Leverage Ratio

A financial metric used to measure the degree of a company's debt compared to its assets, equity, or operational cash flow.