Joanne has come to expect that horse feed prices increase every May. All else equal, how will this affect how Joanne buys horse feed in April?

Question

Quizplus · Accepted Answer

Anticipating a price increase in May, Joanne is likely to buy more horse feed in April to avoid higher prices later. This behavior reflects an increase in her demand for horse feed in April, as she tries to stock up before prices go up.

Joanne Has Come to Expect That Horse Feed Prices Increase