If consumers expect that the price of pretzels will decrease next week, what would happen today?
A) Demand today for pretzels would decrease.
B) Demand today for pretzels would increase.
C) Demand today for pretzels would be unaffected.
D) Supply today of pretzels would decrease.

Question

Quizplus · Accepted Answer

If consumers expect the price of pretzels to decrease next week, they are likely to postpone buying pretzels until they become cheaper. This will lead to a decrease in demand today.

If Consumers Expect That the Price of Pretzels Will Decrease