In January, buyers of gold expect that the price of gold will fall in February.What will happen in the gold market in January, holding everything else constant?

Question

Quizplus · Accepted Answer

When buyers expect the price of gold to fall in the future, they will delay their purchases and reduce the quantity demanded in the current period. This will shift the demand curve to the left, indicating a decrease in demand at each price level. Therefore, the correct answer is D.

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