Question

Identify a product that you consume or otherwise know about that you think is priced weirdly--either it is much cheaper or much more expensive that your common sense would predict. Offer a brief opinion/guess about why you think this price is so weird. Do you think the "supply and demand" model can explain the weird price? Or do you think there is some other reason for the weird price.

Answer 1

Diamonds are a product that is priced weirdly due to the monopolistic control of the diamond market by a few large corporations.

Step-by-step explanation:

An example of a product that is priced weirdly is the diamond industry. Diamonds are significantly more expensive than other gemstones despite the fact that they are not actually rare. This is due to the monopolistic control of the diamond market by a few large corporations, who artificially limit the supply of diamonds to maintain high prices. The supply and demand model alone cannot fully explain the weird price of diamonds because the market is not perfectly competitive and there are other factors at play