If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that equilibrium price will ________ and equilibrium quantity will ________.
A) fall;change very little
B) rise;change very little
C) change very little;fall
D) change very little;rise
E) be the same;be the same

Question

Quizplus · Accepted Answer

When both buyers and sellers expect the price of a commodity to rise in the future, the demand for the commodity will increase and the supply may decrease. As a result, the equilibrium price will rise, and the equilibrium quantity may not change significantly. Therefore, option B is the best choice.

If Both Buyers and Sellers Expect the Price of a Commodity