$\begin{array}{llcc}
\text { 1. An increase in price: } & \text { A. An increase in the quantity traded: } \
\text { 2. A decrease in price: } & \text {B. A decrease in the quantity traded; } \
\text { 3. No change in price: } & \text {C. No change in quantity traded. } \
\end{array}$

-Refer to the above information to answer this question. What is the effect of consumers' expecting that the future price of a product will be lower?
A) 1 and A.
B) 1 and B.
C) 2 and B.
D) 3 and B.
E) 3 and C.
F) 1 and C.

Question

$\begin{array}{llcc}
  \text { 1. An increase in price: } & \text { A. An increase in the quantity traded: }   \
 \text { 2. A decrease in price: } & \text {B. A decrease in the quantity traded;  } \
 \text { 3. No change in price: } & \text {C. No change in quantity traded.  } \
\end{array}$

-Refer to the above information to answer this question. What is the effect of consumers' expecting that the future price of a product will be lower?
A) 1 and A.
B) 1 and B.
C) 2 and B.
D) 3 and B.
E) 3 and C.
F) 1 and C.

Quizplus · Accepted Answer

If consumers expect future prices to be lower, they may decrease current demand, leading to a decrease in current price and quantity traded.

-Refer to the Above Information to Answer This Question