How do future expectations about the price of a good affect the present supply?

A. If the price is expected to increase and then decrease, most sellers will hold onto their supply until the decrease has occurred.

B. If the price of a related good is expected to increase, only a few sellers will hold onto their supply until the increase occurs.

C. If the price is expected to increase, many producers will hold onto their supply.

D. If the price is expected to decrease, many producers will hold onto their supply.

Question

History

Raphael

18 December, 10:11

How do future expectations about the price of a good affect the present supply?

A. If the price is expected to increase and then decrease, most sellers will hold onto their supply until the decrease has occurred.

B. If the price of a related good is expected to increase, only a few sellers will hold onto their supply until the increase occurs.

C. If the price is expected to increase, many producers will hold onto their supply.

D. If the price is expected to decrease, many producers will hold onto their supply.

+3

Answers (1)

Know the Answer?

Jimenez · Answer 1

A because if that can affect the supply sthey are trying to sell so if they are going up and down with the prices they are messing up there future expectations