Buyers and sellers are likely to anticipate what will happen to prices before they buy or sell. If people believe that prices are likely to rise, current supply will shift to the ______ and current demand will shift to th ________.

Question

Quizplus · Accepted Answer

If people anticipate that prices will rise, sellers might hold off on selling, anticipating higher future prices, which decreases current supply (shifts to the left). Buyers, expecting higher future prices, might increase their current purchases, increasing current demand (shifts to the right).

Buyers and Sellers Are Likely to Anticipate What Will Happen