The price of good B has a pattern such that P = $20 on Monday through Thursday of every week,and P = $25 on Fridays.If speculators begin participating in the market for good B,their actions will likely lead to a(n)______________ in the price of good B on Monday through Thursday and a(n)_______________ in the price of good B on Friday.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Question

Quizplus · Accepted Answer

Speculators will likely buy on Monday through Thursday when the price is lower, increasing demand and thus the price. On Friday, they might sell to take advantage of the higher price, increasing supply and potentially decreasing the price.

The Price of Good B Has a Pattern Such That