The Market for Diamond Rings Is Closely Linked to the Market

question 110

Multiple Choice

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.

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Definitions:

Locus of Control

A psychological concept referring to the extent to which individuals believe they have power over events in their lives.

Value Orientations

The general principles or ideals that guide an individual's or a society's behavior and beliefs.

Industry

Pertains to the economic activity concerned with the processing of raw materials and manufacture of goods in factories, as well as the sector of the economy characterized by such activities.

Emotional Intelligence

The capability to recognize, understand, manage, and reason with emotions in oneself and others, crucial for effective interpersonal relations.