Suppose that today, consumers expect the price of bottled water to double in the future. Then today the bottled water's
A) demand curve will shift to the right.
B) demand curve will shift to the left.
C) supply curve will shift to the right.
D) supply curve will shift to the left.

Question

Quizplus · Accepted Answer

Consumer expectations of a future price increase in bottled water would increase current demand for bottled water. This would cause the demand curve to shift to the right.

Suppose That Today, Consumers Expect the Price of Bottled Water