If a press release reports that the future price of new homes is expected to decrease and demanders and suppliers respond equally to the change in the expected future price, which of the following is true?

Question

Quizplus · Accepted Answer

If both demanders and suppliers respond equally to the expectation of future price decreases, demand will decrease as buyers wait for lower prices, and supply will increase as sellers try to sell before prices drop. This leads to a surplus at the current price, causing the price to decrease. However, the equal response from both sides means the quantity demanded and supplied at the new lower price point remains the same, thus the equilibrium quantity stays unchanged.

If a Press Release Reports That the Future Price of New