A decrease 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

A decrease in the expected future price of a good will make the good relatively more attractive to buy now, leading to an increase in current demand. This is represented by a shift to the right of the demand curve.

A Decrease in the Expected Future Price of a Good