-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Question

Quizplus · Accepted Answer

When consumers expect the price of a good to rise in the future, they will increase their current demand in order to avoid paying a higher price later. This will shift the demand curve to the right, resulting in a higher price and quantity.

-In the Above Figure, If D2 Is the Original Demand