Suppose that people expect the price of Bluetooth speakers to rise next year.As a result of this expectation,people will MOST likely:
A)purchase fewer Bluetooth speakers this year.
B)observe higher prices for Bluetooth speakers this year.
C)purchase the same amount of Bluetooth speakers since this expectation will have no effect on consumers this year.
D)decide to wait and purchase the Bluetooth speakers next year.

Question

Quizplus · Accepted Answer

When people expect the price of an item to rise in the future, they are more likely to purchase it now to avoid paying a higher price later. This increase in demand can lead to higher prices for the item in the present.

Suppose That People Expect the Price of Bluetooth Speakers to Rise