If the price of gas is expected to rise sharply in the future, all else the same, the demand for gas today will:
A) increase
B) decrease
C) remain the same
D) change in an indeterminate direction

Question

Quizplus · Accepted Answer

If consumers expect the price of gas to rise sharply in the future, they are likely to purchase more gas now to avoid paying higher prices later, thus increasing the current demand for gas.

If the Price of Gas Is Expected to Rise Sharply