Final answer:
The demand for paintings by Leonardo da Vinci, including the Mona Lisa, determines their price due to the highly inelastic supply. A supply and demand diagram can illustrate this relationship, showing how changes in demand affect the equilibrium price.
Step-by-step explanation:
The Determination of Price for Paintings by Leonardo da Vinci
In the context of economics, the supply of paintings by Leonardo da Vinci, including the Mona Lisa and The Last Supper, is highly inelastic. This means that changes in demand for these paintings have a significant impact on their prices. To illustrate this relationship, we can draw a supply and demand diagram.
In the diagram, the supply curve is shown as close to vertical, indicating that the quantity supplied of these paintings does not vary much in response to changes in price. On the other hand, the demand curve slopes downward, indicating that as the price of the paintings decreases, the quantity demanded increases. The intersection of the supply and demand curves determines the equilibrium price, which is ultimately determined by the level of demand for these paintings.