If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price
A) does not change.
B) rises.
C) falls.
D) might rise, fall, or not change, but the change can never be predicted.
E) might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers.

Question

Quizplus · Accepted Answer

Both producers and consumers believing that the price of a product will rise in the future will create an increase in demand in the market. With the same level of supply, the equilibrium point will shift to a higher price, resulting in a rise in the equilibrium price.

If Both Producers and Consumers Believe That a Product's Price