Alarge 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

Diamonds are mineral non renewable resources that after the offer of diamonds slow down, demand will drive price up again.

Explanation:

First of all we have to understand the association between offer and demand. Offer is the amount of a product or service that is available in the market and demand is the need or requesting call the population have about that product or service. The interaction both define the price of a certain product or service by establishing it in the next correlation. High demand will drive price up of any product or service, Low demand will drive price of that product low. High offer will drive price down and low offer will drive price up. So, the interaction of both of this concepts define the price of anything.

Second, diamonds are mineral resources that form part of the non renewable type that run out at a certain point. So, Cecilia knows both those interactions and decides to buy a diamond now that they are cheap because there is a new source of them and when that source is done, her diamond will rise in value due to the low offer.  

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