In July,market analysts predict that the price of gold will rise in August.What happens in the gold market in July,holding everything else constant?
A)The supply curve shifts to the right.
B)The supply curve shifts to the left.
C)The quantity demanded and the quantity supplied increase.
D)The demand curve shifts to the left.

Question

Quizplus · Accepted Answer

Market analysts predict that the price of gold will rise in August, which means that demand for gold has likely increased in July. Therefore, the demand curve shifts to the right, resulting in a higher equilibrium price and quantity demanded. However, holding everything else constant, the supply curve does not shift, so the only possible adjustment is a decrease in quantity supplied. This leads to a shortage in the market and a higher price for gold.

In July,market Analysts Predict That the Price of Gold Will