In most cases, the price of a commodity is directly proportionate to

In most cases, the price of a commodity is directly proportionate to its scarcity in the marketplace; however, there is one notable exception. Worldwide diamond production tripled between 1986 and 1996; in that time, however, the average price of a diamond increased by more than 50 percent.

Which of the following, if true, would explain the diamond’s rise in price despite its abundance?

For price should be high, the diamond in the market should be low.
E fills the gap as it can control market supply.

A. The price of precious gems such as sapphires and opals is at an all-time high.

B. The number of contractors whose sole job is the cutting and polishing of raw diamond ore has doubled.
>>B weakens . B doesn't state then why price is high if diamond can come to market with double the number of workers .It weakens if any thing.
We need to see at final output by suply vs demand in market.

C. Newly established stable governments in African nations have encouraged foreign investment and helped diamond mines flourish.

D. Per capita diamond consumption is much higher in North America than it is in Asia.

E. A powerful cartel that controls more than 90 percent of the world’s diamonds releases them into the market depending on conditions in the world economy.

E. E talks about increase
in production. Though the production increases, supplies of diamonds are increased in a controlled way. This limited supply must have led to increase in prices.

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A. The price of precious gems such as sapphires and opals is at an all-time high. (does not explain the increased prices of diamonds)

B. The number of contractors whose sole job is the cutting and polishing of raw diamond ore has doubled. (the number of contractors increasing could lead to economies of scale. also more diamonds would obviously require more people. so nope)

C. Newly established stable governments in African nations have encouraged foreign investment and helped diamond mines flourish. (this would stabilise the prices and maybe even decrease it)

D. Per capita diamond consumption is much higher in North America than it is in Asia. (doesn't matter at all)

E. A powerful cartel that controls more than 90 percent of the world’s diamonds releases them into the market depending on conditions in the world economy. (cartel controlling the diamonds would make it difficult to regulate the prices)