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Ceteris Paribus, If Buyers Expect the Price of Airline Tickets

Question 36

Multiple Choice

Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be


A) An increase in the demand for airline tickets.
B) A decrease in the supply of airline tickets.
C) A decrease in the demand for airline tickets.
D) No change in the supply of or demand for airline tickets because the price is not changing right now. Expectations that prices will fall will cause consumers to buy fewer tickets now and wait to purchase airline tickets later, when the price actually falls.

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