Suppose That Consumers Expect the Price of a Product to Decrease

question 249

Multiple Choice

Suppose that consumers expect the price of a product to decrease in the future. The result is that:

• A) the current demand for the product decreases.
• B) the current supply of the product increases.
• C) the current supply of the product decreases.
• D) the current demand for the product increases.

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Definitions:

Foreign Investment

Investment in domestic companies and assets of another country by a foreign investor, aiming to gain returns.

Circle

A simple closed shape consisting of all points in a plane that are a given distance from a given point, the centre.