If television sellers expect the prices of televisions to fall in the future, then today, we are likely to see the price

Question

Quizplus · Accepted Answer

If television sellers expect prices to fall in the future, they may try to sell as many televisions as possible at higher prices today. This would lead to an increase in quantity demanded, causing the price to eventually fall. Therefore, the price of televisions would fall, while the quantity demanded and hence, supply, would rise. This is reflected in option D, which is the correct choice.

If Television Sellers Expect the Prices of Televisions to Fall