If consumers expected the price of a good to increase in the near future and the price of a complement good decreased at the same time, as a result:

Question

Quizplus · Accepted Answer

When consumers expect prices to rise in the future, they are likely to buy more now, increasing current demand. Simultaneously, a decrease in the price of a complement good makes the good more attractive, further increasing demand. This increased demand leads to higher prices and larger quantities exchanged.

If Consumers Expected the Price of a Good to Increase