When firms in a market expect the price of their products to rise,the supply curve of their goods ________,causing the equilibrium price to ________.

Name: When firms in a market expect the price of their products to rise,the supply curve of their goods ________,causing the equilibrium price to ________.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

When firms expect prices to rise in the future, they may hold back supply now to sell later at higher prices, causing the current supply curve to decrease and the equilibrium price to rise.

When Firms in a Market Expect the Price of Their