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If Buyers Expect That the Price of Steel Will Increase

Question 37

Multiple Choice

If buyers expect that the price of steel will increase soon due to a limit on imports, the immediate effect will be a(n)


A) increase in the demand for steel as buyers switch from substitute goods
B) decrease in the quantity demanded of steel due to the change in supply
C) increase in the demand for steel due to the expectations of a higher price
D) decrease in the demand for steel due to worsening tastes and preferences

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