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

Question

Quizplus · Accepted Answer

When buyers of gold expect the price of gold to fall, they will decrease the quantity demanded in anticipation of a lower price in the future. This results in a leftward shift of the demand curve.

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