In the market for coffee, consumers expect the price of coffee beans to rise next week. This would make the demand for coffee this week

Question

Quizplus · Accepted Answer

When consumers expect the price of a good to rise in the future, they are more likely to purchase it now to avoid paying a higher price later. This increases the current demand for the good, shifting the demand curve to the right.

In the Market for Coffee, Consumers Expect the Price of Coffee