Which of the following is an example of speculative demand?

Question

Quizplus · Accepted Answer

Speculative demand refers to the demand for a good or service based on the expectation of future price changes. Option B fits this definition as it states that when the expected price of housing increases, the demand for housing increases. The other options do not involve speculative demand. Option A is an example of a negative relationship between price and quantity demanded. Option C is an example of a substitution effect between different types of housing. Option D is an example of complementary demand, where the demand for one good (housing) leads to an increase in demand for another good (house insurance).

Which of the Following Is an Example of Speculative Demand