An increase in the future expected price of a storable good ________ supply.
A) increases
B) decreases
C) does not change
D) changes in an indeterminate direction

Name: An increase in the future expected price of a storable good ________ supply. A) increases B) decreases C) does not change D) changes in an indeterminate direction
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Question

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An increase in the future expected price of a storable good decreases current supply because producers may hold back inventory to sell at higher prices in the future.

An Increase in the Future Expected Price of a Storable