South Africa, with large natural diamond deposits, is famous for its diamond exports. The international demand for diamonds for industrial and other purposes, such as jewelry, has led to the production of synthetic diamonds by other countries, such as the United States. Which answer BEST describes the concept highlighted in this scenario?
International cooperation has been reduced over the years.
Markets are no longer linked together.
Prices provide incentives for sellers.
Consumers prefer synthetic diamonds to natural ones.
The answer that BEST describes the concept highlighted in this scenario is:
Prices provide incentives for sellers.
This option reflects the idea that the international demand for diamonds, both natural and synthetic, influences market dynamics and pricing, which in turn incentivizes sellers to produce and offer these products.