An increase in the expected future price of a good will cause the current demand for the good to
A) decrease, which is a shift to the left of the demand curve.
B) decrease, which is a shift to the right of the demand curve.
C) increase, which is a shift to the left of the demand curve.
D) increase, which is a shift to the right of the demand curve.

Question

Quizplus · Accepted Answer

If consumers expect the price of a good to rise in the future, they are likely to buy more of it now, increasing current demand and shifting the demand curve to the right.

An Increase in the Expected Future Price of a Good