The price of diamonds is substantially greater than the price of water because:

The relation between the weight of a diamond and its cost is linear. In looking at two diamonds, we find that one of the diamonds weighs 0.6 carat and costs $3188, while the other diamond weighs 0.7 carat and costs $3845. Linear function that relates the price of a diamond (P) to its weight (x) is P(X) = $6570x - 754. Interpret slope in context.Group of answer choicesFor every additional carat in weight of a diamond, the price goes up $6570.For every additional carat in weight of a diamond, the price goes down by $754.For every additional carat in weight of a diamond, the price goes down $6570.For every additional carat in weight of a diamond, the price goes up by $754.

Which statement about conflict diamonds is true?Multiple choice question.They are over-extracted because the present value of future sales is overestimated.They are over-extracted because user costs are overestimated.They are over-extracted because property rights to diamond mines are uncertain.They are conserved to pay to rebuild the country once the wars have ended.

Question 8If a 15 percent decrease in the price of sapphires causes a 20 percent decrease in the quantity of diamonds demanded, then the cross-price elasticity of demand between sapphires and diamonds is:1 point 0.75 4.001.33 0.60

A large share of the world's supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is $1000 per diamond, and the demand for diamonds is described by the following schedule: Price($): 8000, 7000, 6000, 5000, 4000, 3000, 2000 Quantity: 5000, 6000, 7000, 8000, 9000, 10000, 11000 a) If there were many suppliers of diamonds, what would be the price and quantity? b) If there was only one supplier of diamonds, what would be the price and quantity? c) If Russia and South Africa formed a cartel, what would be the price and quantity? If the countries split the market evenly, what would be South Africa's production and profit? What would happen to South Africa's profit if it increased its production by 1000 while Russia stuck to the cartel agreement? d) Use your answer to part (c) to explain why cartel agreements are often not successful.

The relation between the weight of a diamond and its cost is linear. In looking at two diamonds, we find that one of the diamonds weighs 0.6 carat and costs $3188, while the other diamond weighs 0.7 carat and costs $3845. Linear function that relates the price of a diamond (P) to its weight (x) is P(X) = $6570x - 754. Interpret slope in context.