If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Question

Quizplus · Accepted Answer

By storing part of their current production, producers anticipate selling it at a higher price in the future when the expected demand increase materializes, thus potentially increasing their profits. This action reduces the current supply in the market.

If the Producers of Canned Green Beans Expect the Price