The demand for bottled water decreases at a time when people believe bottled water prices will soon fall. The change in demand is most likely attributable to a change in:
A)income.
B)consumer expectations.
C)consumer preferences.
D)prices of other goods.

Question

Quizplus · Accepted Answer

The decrease in demand for bottled water is due to a change in consumer expectations that the prices of bottled water will soon fall. This suggests that consumers are anticipating future changes in price and adjusting their buying behavior accordingly, which is a change in consumer expectations.

The Demand for Bottled Water Decreases at a Time When