It is expected that the price of a bushel of wheat will increase in one month.This belief will result in
A) an increase in the current supply of wheat.
B) a decrease in the current supply of wheat.
C) a decrease in the future supply of wheat.
D) no change in the current or future supply of wheat.
E) an increase in the current quantity supplied of wheat.

Question

Quizplus · Accepted Answer

If sellers expect the price of wheat to increase in the future, they might hold onto their current stocks to sell at the higher future price, leading to a decrease in the current supply of wheat.

It Is Expected That the Price of a Bushel of Wheat