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

question 55

Multiple Choice

If both producers and consumers believe that a product's price will rise in the future, then in the present, the equilibrium price

• A) might rise, fall or not change, but the change can never be predicted.
• B) might rise, fall or not change depending on whether the effect from the producers is greater or less than the effect from the consumers.
• C) falls.
• D) rises.
• E) does not change.

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