Suppose that consumers expect that the price of a product will increase in the future.The result is that

Name: Suppose that consumers expect that the price of a product will increase in the future.The result is that
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If consumers expect that the price of a product will increase in the future, their rational response would be to buy the product now at a lower price. This would lead to an increase in demand for the product in the current period. Therefore, option A is the correct choice.

Suppose That Consumers Expect That the Price of a Product