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
A
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Sarah consumes only strawberries and cream, and she is spending all of her income. Her marginal utility of her last dish of strawberries is 200 and her marginal utility of her last pint of cream is 200
The price of strawberries is $1.00 per dish and the price of cream is $2.00 per pint. To maximize her utility, Sarah should A) buy more strawberries and less cream. B) buy more cream and less strawberries. C) not change her purchases of strawberries and cream. D) definitely buy no cream at her consumer equilibrium.
When competition is present, self-interested business decision makers have a strong incentive to
a. produce efficiently. b. ignore the wishes of customers who are also self-interested. c. adopt technological improvements slowly in order to avoid making wrong decisions d. maximize price in order to maximize profits.