If the price of used plug-in electric cars is expected to rise in six months, the reaction in the supply of those cars in the market today would likely be a(n):

Question

Quizplus · Accepted Answer

If sellers expect higher prices in the future, they may hold onto their cars now to sell them later at a higher price, leading to a decrease in current supply, which is represented by a leftward shift of the supply curve.

If the Price of Used Plug-In Electric Cars Is Expected