Suppose that the number of buyers in a market increases and expectations of the price of the good indicate that its price will rise in the future.What would we expect to happen in the market?
A) the equilibrium price would increase but the impact on the amount sold in the market would be ambiguous
B) the equilibrium price would decrease but the impact on the amount sold in the market would be ambiguous
C) both equilibrium price and equilibrium quantity would increase
D) equilibrium quantity would increase but the impact on equilibrium price would be ambiguous
Correct Answer:
Verified
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