You are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X, (2)the equilibrium price (P)of X and (3)the equilibrium quantity (Q)of X.
-Refer to the above.Consumer expectations that the price of X will rise sharply in the future will:

Question

Quizplus · Accepted Answer

Consumer expectations of a future price increase for X will increase demand for X, leading to an increase in equilibrium price and quantity. Therefore, the correct answer is B, which states that consumer expectations will increase D, increase P, and increase Q.

You Are Asked to Determine,other Things Equal,the Effects of a Given