An Expectation That the Price of a Good Will Increase

question 84

Multiple Choice

An expectation that the price of a good will increase in the future is likely to:

• A) increase current demand.
• B) decrease current demand.
• C) have no impact on current demand.
• D) only affect the seller's decisions.

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Definitions:

Placebo

A substance with no therapeutic effect, often used as a control in testing new drugs.

Control Group

In an experiment, a group of subjects that does not receive the treatment being tested and is used as a benchmark to measure how the other tested subjects do.

Dependent Variable

In scientific research, the variable that is tested and measured; it is 'dependent' on the independent variable.

Fat Layer

A layer in the body composed primarily of adipose tissue, which stores energy and insulates and cushions the body.