Ceteris paribus,which of the following is most likely to shift both the demand and the supply curves?
A)Technology.
B)Expectations.
C)The price of the good itself.
D)Income.

Question

Quizplus · Accepted Answer

Expectations about future prices or availability can affect both consumers' willingness to buy a product (demand) and producers' willingness to make and sell a product (supply). For example, if people expect the price of a good to rise in the future, they might buy more now (increasing demand), and producers might hold off selling until the price goes up (decreasing supply). Similarly, if a future shortage is expected, consumers might buy more in anticipation (increasing demand), while producers might try to increase production to meet the expected future demand (increasing supply).

Ceteris Paribus,which of the Following Is Most Likely to Shift