10. Suppose the diamond industry is a monopoly and suppose that there
is an increase in the productivity of diamond miners. Which of
the following would you predict will happen in the market for
diamonds in the short run.
- An increase in the price of diamonds and no change in the number
of diamonds sold.
- An increase in the price of diamonds and a decrease in the number
of diamonds sold.
- No change in the price of diamonds and no change in the number
of diamonds sold.
- A decrease in the price of diamonds and no change in the number
of diamonds sold.
- A decrease in the price of diamonds and an increase in the number
of diamonds sold.
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