When producers anticipate that the price of their product will increase in the future
A) the supply curve will shift to the right.
B) the supply curve will shift to the left.
C) the current production will move along on the supply curve.
D) they will immediately lobby Congress to adjust prices now.

Question

Quizplus · Accepted Answer

If producers anticipate that the price of their product will increase in the future, they may hold back on current production in order to sell more later at a higher price. This would result in a decrease in the current supply and a shift of the supply curve to the left.

When Producers Anticipate That the Price of Their Product Will