In January, buyers of gold expect that the price of gold will rise in February.What happens in the gold market in January, holding all else constant?
A)The supply curve shifts to the right.
B)The demand curve shifts to the left.
C)The demand curve shifts to the right.
D)The quantity demanded increases.

Question

Quizplus · Accepted Answer

Buyers expecting the price of gold to rise in February will increase their demand for gold in January, shifting the demand curve to the right. This will lead to an increase in both the price and quantity of gold traded in the market. The supply curve is unaffected by this expectation.

In January, Buyers of Gold Expect That the Price of Gold