With an increase in the price of diamond, its demand also increases. This is because it is a.

Substitute good

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Complementary good

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Conspicuous good

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None of the above

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Solution

The correct option is B Conspicuous good
Diamond is an example of conspicuous good. In the case of conspicuous goods the rise in price of a good leads to rise in demand of the good.
Hence, option C is correct.

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