(Figure: Supply Shifts) In the figure, the initial supply curve isS₁. If producers form expectations that the price will be lowerin the near future, S₁ will:

Question

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If producers expect prices to decrease in the near future, they will want to sell as much as possible at the current higher price, and so they will increase current supply. This will shift the supply curve to the right, from S₁ to S₃.

(Figure: Supply Shifts) in the Figure, the Initial Supply Curve