Why diamonds are so expensive

This week we've been discussing supply, demand, and equilibrium. I was going to Janesville with my mom to pick out flooring for my room and a diamond commercial came on. So we began discussing how big a 1/10 of a karate diamond was (they had mentioned it in the commercial) and y they were so expensive. We discussed how since diamond are regulated (as far as how many are released at one time). So this regulation of supply (and the fact that making actually diamonds is a long process) allows jewelers to set diamond prices so high. If diamonds were easier to supply (man made diamonds) the equilibrium price would drop. So, now that you are thinking about diamonds as more than shiny little rocks I think I'm done explaining why diamonds are so expensive.

Picking a College

Alright, most of us are going through the process of picking what college to go to (at least most people who take AP classes take them for the college credit). You look at the "incentives" of each campus. Everything from the size of the student body, the size of the campus, what the college is known for, and (one of the biggest factors) cost of attendence. Different things are considered incentives to different people (beauty/incentives is/are in the eye of the beholder). If all incentives were the same then getting into college wouldn't be as competative and deciding on one college wouldn't be this important. Incentives drive us to increase our human capital, and going to college is becoming the most popular way to increase ones human capital. The simple concept of an incentive is used everyday and it drives almost every decision we make.