Question at position 24 True or False: The value of diamonds comes from their scarcityFalseTrue

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BlackTom AI · Accepted Answer

Consider the statement and its two possible truth values.
Option 1: 'False' — Why this would be considered incorrect: if someone asserts that the value of diamonds does not come from their scarcity, they are ignoring a fundamental economic principle. Scarcity helps create supply constraints, which, all else equal, can drive prices up when demand remains steady or grows. In the diamond market, other factors such as consumer demand, branding, durability, and perceived prestige interact with scarcity, but saying scarcity plays no role overlooks a core driver of value in many commodities.
Option 2: 'True' — Why this can be considered correct: scarcity limits how abundant diamonds are, helping to sustain higher prices and a sense of rarity, which consumers often equate with value. The diamond market intentionally maintains controlled supply (and with marketing efforts that emphasize rarity), so scarcity is a key contributor to their value. While other factors like marketing, desirability, and durability influence price, the scarcity component remains a fundamental driver that supports the overall value proposition.
In sum, recognizing scarcity as a central factor aligns with economic principles about supply, demand, and price, though it is not the sole determinant of value, as other elements also play important roles in shaping how much people are willing to pay.

Question at position 24 True or False: The value of diamonds comes from their scarcityFalseTrue

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