Question

A large, new diamond mine has just opened, and the price of diamonds has gone down. Since she has studied economics, Cecilia decides to buy a diamond necklace since she knows that

Answer 1

Since the options have not been given, I am giving a general answer.

The correct answer could be - The cost depends according to the demand.

Scarcity is a situation when the availability of the required product is limited in the market when compared to the demand. In such cases, when the demand increases, the prices of the commodities go up. Therefore, based on the capacity of the individual, a person can make a purchase of the limited commodity.

Diamonds are precious stones which tend to have a high price always since the demand will definitely exceed the availability. Therefore, Cecelia stocks them up by buying them at a lower price since she knows that the price will definitely go up when the demand goes up.