If consumers believe that an item will not be available in the future, then demand will shift _____ and the equilibrium quantity will _____.

Question

Quizplus · Accepted Answer

When consumers believe an item will not be available in the future, demand increases because people want to buy it before it's gone, shifting the demand curve to the right. This increase in demand typically leads to a higher equilibrium quantity as the market adjusts to the increased desire for the product.

If Consumers Believe That an Item Will Not Be Available