If producers expect the price of a good to fall in the future, they might:
A) raise the price of the good today.
B) hoard goods to save them for when the price is lower.
C) increase their supply of goods out of storage today.
D) increase the demand for their goods today.

Question

Quizplus · Accepted Answer

If producers expect prices to fall in the future, they are likely to increase supply now to sell at higher current prices rather than wait for lower future prices.

If Producers Expect the Price of a Good to Fall