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

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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

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(B) Diamonds are an unusable resource, making them scarce.

Now from an Economist point of view, she bought a diamond necklace when the price was low, she knows that prices will sooner or later rise. Cecilia knows that the only way to increase the value of diamonds is to make them scarce. How do mining companies make diamonds scarce, they only reduce production, and then the price rises.