What would happen to demand if consumers expect the price of a good to rise in the near future?
A) The current demand would increase.
B) The future demand would decrease.
C) The current demand would not be affected.
D) The current demand would decrease.

Question

Quizplus · Accepted Answer

When consumers expect the price of a good to rise in the near future, they are likely to purchase more of the good now to avoid paying a higher price later, leading to an increase in current demand.

What Would Happen to Demand If Consumers Expect the Price