-In the above figure, if D₂is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Question

Quizplus · Accepted Answer

If consumers expect prices to rise in the future, the current demand will increase, shifting the demand curve to the right. This results in a higher price and higher quantity, which corresponds to point c with price P3 and quantity Q3.

-In the Above Figure, If D2 is the Original Demand

-In the Above Figure, If D₂is the Original Demand