Suppose that people expect that the price of orange juice will rise next month.We would predict that the equilibrium quantity of orange juice will ________ and the equilibrium price of orange juice will ________ this month.

Question

Quizplus · Accepted Answer

When people expect the price of orange juice to rise in the future, they are likely to buy more now to avoid higher prices later. This increases the current demand, leading to both a higher equilibrium quantity and price this month.

Suppose That People Expect That the Price of Orange Juice