-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 that the price of a good will rise in the future, they are likely to buy more of the good now, leading to an increase in demand. This shift in demand would result in a higher equilibrium price and quantity, which is represented by point c.

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

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